Indian Exports Feared to be Severely Affected by US Policy

09-Jan-2026 05:12 PM

New Delhi. The bill drafted by the US to impose tariffs of up to 500 percent on countries purchasing crude oil from Russia, if passed by Congress, will significantly increase difficulties for India, China, Brazil, and several other countries.

According to an international trade research organization, this high 500 percent tariff in the US could apply to both goods and services. This could completely halt India's average annual exports to the US, which amount to $120 billion.

According to the organization, there is no legal mechanism for imposing tariffs on services, so any increase in tariffs would have to be implemented indirectly. This could involve attempts to tax US companies for payments made for Indian service exports.

Other provisions proposed in the bill include imposing various controls and restrictions on individuals and entities doing business with or having any kind of relationship with Russia. However, this will not directly affect India, as a 50 percent tariff has already been imposed on Indian products in the US on this basis.

An important point is that the additional tariffs imposed on products from India and other trading partner countries can be challenged in US courts.

The US Supreme Court is expected to rule soon on cases that question the legality of these tariffs, as they were imposed without the consent of the US Congress.