New Delhi, September 19, 2026 (Yes Punjab News)
India should adopt a calibrated response to the new US law empowering President Donald Trump to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, experts said on Saturday.
The legislation, signed into law by Trump on Friday, gives the US administration broad authority to impose the tariffs, with waiver provisions and other conditions. It does not automatically impose a 100 per cent tariff on all Indian exports to the US.
Dr Manoranjan Sharma, Chief Economist at Infomerics Ratings, said New Delhi should seek product-specific exclusions, tariff-rate quotas, transition periods, a phased reduction in Russian crude purchases and a clear ceiling below the statutory 100 per cent maximum.
“The waiver provision in the U.S. law creates diplomatic space; India should use it,” Sharma said.
He also suggested that India seek long-term US energy supply arrangements and improved market access for Indian pharmaceuticals, engineering goods, gems and jewellery. He said relief should also be sought for supply chains where US companies depend on Indian inputs.
“If the US government expects India to diversify its oil basket, it should help make that transition economically feasible,” Sharma said.
Sharma recommended targeted temporary interest subvention, enhanced export-credit insurance, faster duty refunds, logistics support and working-capital assistance for firms and labour-intensive clusters demonstrably affected by US measures.
He also called for India to accelerate trade diplomacy with the European Union, the UK, Canada, Gulf economies and other partners, while stressing that export diversification should involve higher-quality products, stronger design capabilities, trusted standards, local distribution networks and greater movement into technology-intensive goods.
India is among the largest buyers of Russian crude and could therefore face pressure under the new US measure. The country has also been seeking to protect its energy security while navigating its trade relationship with Washington.
According to the source material, India exported goods worth about $87.3 billion to the US in FY2025-26, compared with $86.5 billion in FY2024-25. Imports from the US were put at $53.5 billion, leaving a goods trade surplus of about $33.8 billion.
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