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International Relations17 Oct 2026 · about 6 min

Tariffs pose a risk to US-India relationship

The brief

By Sunday, President Donald Trump must decide whether to impose certain penalties authorized by a bipartisan sanctions law he signed last month. The deadline matters because the law targets countries and entities connected to Russian energy purchases, while giving the president broad authority to waive penalties if he believes doing so serves US interests. The possible actions include sanctions on Russian individuals or entities and tariffs on China for buying Russian gas. India is also at risk because it relies on Russian energy. Trump previously raised tariffs on India over those purchases, then removed them as trade talks advanced. The White House has not said which measures Trump will choose. An official said the administration will comply with the law’s requirements. The decision could therefore become both a sanctions choice and a bargaining tool in ongoing US-India trade negotiations.

01

What decision must President Trump make by Sunday under the new sanctions law?

By Sunday, President Donald Trump must decide whether to impose certain penalties authorized by a bipartisan sanctions law he signed last month. The deadline matters because the law targets countries and entities connected to Russian energy purchases, while giving the president broad authority to waive penalties if he believes doing so serves US interests.

The possible actions include sanctions on Russian individuals or entities and tariffs on China for buying Russian gas. India is also at risk because it relies on Russian energy. Trump previously raised tariffs on India over those purchases, then removed them as trade talks advanced.

The White House has not said which measures Trump will choose. An official said the administration will comply with the law’s requirements. The decision could therefore become both a sanctions choice and a bargaining tool in ongoing US-India trade negotiations.

02

What are tariffs, and how are they different from sanctions?

Tariffs are government charges placed on imported goods. They usually make foreign products more expensive in the importing country. Governments use them to protect domestic industries, raise revenue, or pressure trading partners during negotiations. The cost is often passed along to businesses and consumers.

Sanctions are broader restrictions designed to influence a government, company, or person. They can freeze assets, limit financial transactions, restrict exports, or block dealings with targeted parties. In this article, the sanctions law covers penalties involving Russian individuals or entities and allows possible tariffs on countries buying Russian energy.

The two tools can overlap, but they work differently. A tariff directly changes the price of imports. A sanction can prevent specific transactions altogether. Both may alter behavior, yet both can also harm the country imposing them by disrupting trade, raising costs, or damaging diplomatic relationships.

03

How much Russian oil and gas does India buy, and how important is Russia as an energy supplier to India?

The article does not state how many barrels of Russian oil or how much Russian gas India buys. It also gives no percentage showing Russia’s share of India’s energy supply. Therefore, the requested scale cannot be calculated from the supplied text without adding outside data.

What the article does establish is politically important. Richard Fontaine says both the United States and India should stop buying Russian oil and gas. Sadanand Dhume describes India’s reliance on Russian energy as significant enough that punishment could deal a “body blow” to the bilateral relationship.

The current reality is that India remains a major concern in the sanctions debate, but the article provides no numerical measure. Any assessment of Russia’s precise ranking or India’s purchase volumes would require current energy-trade statistics from another source. The immediate issue is the possible use of sanctions or tariffs, not a stated supply figure.

04

Why does the United States want India and other countries to reduce their purchases of Russian energy?

The United States wants India and other countries to reduce their purchases of Russian oil and gas. The article presents this goal through a bipartisan sanctions law that permits penalties connected with Russian energy transactions. Reducing purchases is therefore part of Washington’s broader effort to apply economic pressure through trade and sanctions policy.

The proposed mechanism is straightforward. The United States could impose tariffs or other penalties on countries that continue buying Russian energy. Fontaine says the administration might use the law to pressure India during trade negotiations. Trump had already increased tariffs on India over Russian energy purchases, although he later removed them as talks progressed.

The policy creates a difficult balance. Pressure may encourage countries to reduce Russian purchases, but India’s advisers warn that punishment could damage the US-India relationship. The article does not describe the law’s full strategic rationale or measure its expected effect. It shows instead how sanctions policy and diplomacy are now closely connected.

05

What could happen to US-India trade negotiations and the broader relationship if the United States imposes tariffs on India?

Additional US tariffs would make Indian goods more expensive in the American market and could provoke an economic response from India. More importantly in this case, they would directly collide with ongoing US-India trade negotiations. The article says those talks would surely be disrupted by further tariffs.

The earlier pattern shows the possible mechanism. Trump had raised tariffs on India because of its Russian energy purchases, then removed them as trade negotiations progressed. Fontaine says it is “100%” possible that the administration could again use the sanctions law to pressure India into accepting US demands.

The wider consequence could reach beyond trade. Sadanand Dhume warns that punishing India for relying on Russian energy would deal a “body blow” to the US-India relationship. The article does not predict a final outcome, but the immediate risks are clearer: stalled negotiations, intensified pressure, and damage to diplomatic ties. Washington must weigh those costs against its sanctions objectives.

06

What alternatives does India have for buying oil and gas, and what trade-offs would switching suppliers create?

India’s alternatives would generally include buying oil and gas from other international suppliers, increasing domestic production, or using less energy through efficiency and substitution. However, the article names no alternative countries, technologies, or supply contracts. It also does not quantify how much Russian energy India could replace.

Switching suppliers would involve trade-offs. Imported fuel can differ in price, quality, transport distance, and contract terms. New suppliers may require different shipping routes, infrastructure, or payment arrangements. Reducing oil and gas use could also require time and investment. These are established features of energy substitution, but they are not detailed in the article.

The political trade-off is explicit. India could reduce exposure to US sanctions pressure, yet changing suppliers might raise costs or complicate energy security. Continuing to buy Russian energy could preserve existing arrangements but risk US tariffs and relationship damage. The article leaves the practical choices and financial consequences unresolved.

07

How do governments use tariffs and sanctions to influence another country’s behavior, and why can these tools also damage their own economic and diplomatic goals?

Tariffs influence behavior by making imported goods more expensive. Sanctions apply restrictions to targeted people, companies, transactions, or countries. Governments may use either tool to discourage conduct, force negotiations, or signal opposition. In this case, Washington is considering pressure over purchases of Russian oil and gas.

The mechanism depends on economic pain. Tariffs can reduce demand or make a trading partner reconsider its policies. Sanctions can block access to money, markets, or business relationships. Trump previously raised tariffs on India over Russian energy purchases, then removed them as trade talks progressed. That example shows how pressure can also become a negotiating instrument.

These tools can undermine the goals they serve. Tariffs may disrupt negotiations and increase costs. Sanctions may push partners away or harm cooperation. Dhume warns that targeting India could deal a “body blow” to US-India relations. The article therefore presents pressure as powerful but risky, especially when trade and diplomacy are already active.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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