President Donald Trump has signed into law a measure that grants the United States the authority to impose tariffs of up to 100% on the world's five largest buyers of Russian oil and natural gas — a policy that squarely targets India and China. The legislation does not automatically trigger penalties but instead gives the president discretionary power to decide which countries face duties and at what level.
Under the law, the Treasury Department is required to identify the top five nations importing Russian petroleum products, after which the executive branch can determine whether tariff action is warranted. Both New Delhi and Beijing have become critical outlets for Russian energy exports since Western sanctions cut Moscow off from European markets following its invasion of Ukraine in February 2022. India alone now sources roughly a third of its crude from Russia, while China has significantly expanded its purchases of discounted Russian oil.
The timing of the signing is noteworthy. It arrives just weeks before Trump is expected to meet Chinese President Xi Jinping in what analysts describe as one of the most consequential bilateral encounters of the year. Washington has long pressed Beijing to curb its energy ties with Moscow, and the new law gives Trump a direct lever to exert pressure during those talks.
Legal experts note that the tariff authority is not mandatory — Trump could choose to apply zero percent duties, partial rates, or exemptions for specific countries. That flexibility is precisely what makes the law politically significant rather than an immediate economic blow. It sends a clear signal while preserving diplomatic room to maneuver.
Indian officials have so far responded cautiously, emphasizing that New Delhi's purchases of Russian oil are driven by energy security needs and have been approved under international trade rules. Some analysts warn that even the threat of tariffs could disrupt global energy markets, where Indian refineries play a key role in processing Russian crude and exporting products worldwide.
