New US law gives President Trump oil tariffs
Congress approved expanded presidential power to impose tariffs on oil buyers, creating uncertainty for India’s crude imports and adding near-term upside risk to global prices.
Mateo Fernandez ·
New US law on September 20 gives President Trump authority to impose tariffs on oil buyers, raising uncertainty for India's energy imports.
Officials said the measure, which passed Congress with bipartisan support, broadens tools the administration can use to penalize foreign purchasers of targeted Russian crude; market participants warned the change could tighten trade flows and add upward pressure to crude prices.
India's oil import exposure
India is the world’s third-largest oil consumer and relies on a mix of Middle Eastern, African and Russian barrels to meet domestic demand. Data showed that purchases of discounted Russian crude have been one channel for cheaper supply; traders said tariffs on buyers could reduce those flows or force price adjustments that narrow margins for refiners.
The move complicates New Delhi’s energy planning and trade relationships. Officials said India will need to weigh alternative suppliers, longer-term contracts or diplomatic options to secure volumes and manage costs, each of which carries logistical and fiscal consequences.
Markets will focus on whether President Trump exercises the new authority by October 31, 2026, and on any implementing guidance that spells out which transactions and companies face tariffs. That timetable will determine near-term pressure on spot markets and shipping routes.