India faces renewed pressure from a new U.S. sanctions law signed by President Trump that authorizes tariffs up to 100 percent on nations buying Russian oil. The legislation aims to cut revenue funding Moscow's war in Ukraine but grants Trump broad discretion on enforcement, creating uncertainty for Prime Minister Narendra Modi's government. India imports over 90 percent of its crude oil, with Russian supplies accounting for roughly half of imports this summer, according to Kpler, as the war in Iran disrupted Middle Eastern shipments. This complicates a February trade agreement where Washington lowered tariffs in exchange for India reducing Russian oil purchases — a deal undermined by subsequent geopolitical shifts, including a Supreme Court ruling limiting Trump's tariff authority and the Iran conflict.

India's foreign ministry affirmed its commitment to energy security for its 1.4 billion people, warning of implications for bilateral ties and global energy markets. The U.S. has become a major energy partner, supplying over 50 percent of India's cooking gas imports, up from 8 percent in December. Former trade official Ajay Srivastava argues India should not fixate on U.S. tariffs, noting they are paid by American importers and raise domestic costs. New Delhi continues to diversify suppliers based on market conditions while navigating competing strategic and economic imperatives.