External Affairs Minister S. Jaishankar met with US Secretary of State Marco Rubio on the sidelines of the 81st United Nations General Assembly in New York, where Jaishankar conveyed India's economic and strategic concerns about the newly signed Lindsey O. Graham Sanctioning Russia and Iran Act (SRIA). This act grants the US President authority to impose tariffs of up to 100% on major buyers of Russian oil and gas, a significant concern for India, which is a major purchaser of Russian crude.
India has explicitly stated its commitment to ensuring energy security for its 1.4 billion people and warned of potential implications for the bilateral relationship with the US if these tariffs are enforced. The US move comes as both countries are working to finalize a bilateral trade deal. India's Russian crude imports have fallen to about 1.9 million barrels a day, the lowest since April, but still constitute over 35% of its total imports.
Former US National Security Advisor John Bolton criticized the SRIA, calling it a "big mistake" that could cause significant geopolitical friction with key partners like India. He argued that the US should prioritize strategic partnerships, such as the Quad, over trade disputes and tariffs, particularly given that China, not India, should be the primary focus if the goal is to target major purchasers of Russian energy. Bolton emphasized the importance of high-level strategic alignment between the US and India to counter threats from China, rather than focusing on economic penalties.
The act takes effect within 30 days of signing, around mid-October, after which the US Trade Representative will identify target countries and recommend tariff rates. While the 100% tariff authority is discretionary, not automatic, its potential implementation could create significant uncertainty for Indian exporters and impact India's trade balance and domestic fuel pricing structures due to its reliance on cheaper Russian oil. Diplomatic negotiations and upcoming high-level meetings will determine the actual impact of this legislation on India-US bilateral ties.
