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US wants to become 'huge source' of India's energy as Trump gains power to tariff Russian oil buyers

A senior State Department official says Washington wants to help India diversify its energy supply, days after President Donald Trump signed a law allowing tariffs of up to 100 percent on countries that buy Russian oil and gas.

Modi Trump Meeting

US president Donald Trump and Indian prime minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., February 13, 2025.

Reuters
  • A new US law lets Trump impose tariffs of up to 100 per cent on buyers of Russian oil and gas, including India.
  • A senior State Department official said there are "no hard feelings" over India's response to the law.
  • A broad national security waiver means the tariffs may not be applied right away.
  • Washington is pitching US LPG and LNG, plus renewed access to Venezuelan oil, as alternatives for India.

THE UNITED STATES is positioning itself as a major energy supplier to India, a senior State Department official said, days after President Donald Trump signed a law that allows him to impose steep tariffs on countries buying Russian oil and gas, including India.

"We are looking to also become a huge source of India's energy needs. We're increasing our hydrocarbon exports," the official said.


Trump last week signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The law authorizes him to impose tariffs of up to 100 percent on countries that buy Russian oil and gas, including China and India.

The law is named after the late Sen. Lindsey Graham, who had proposed a sanctions bill that would have imposed 500 percent tariffs on countries buying Russian oil.

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"India has been looking for a long time to diversify its energy sources. They're a country that has massive energy needs," the official said.

'No hard feelings'

Asked about India's concerns over "potential implications" of the law for the bilateral relationship, the official said Congress had taken a hard line, especially in public.

"You had members of Congress calling out India in particular, so of course India has to respond. We understand that. They have a domestic constituency, as do we. Like, there is no sort of hard feelings on any of that kind of activity," the official said.

Responding to a question from PTI, the official said the law gave Trump "a new tool in his toolbox" but did not mean he would use it right away.

"That doesn't necessarily mean he deploys it tomorrow, but he has the opportunity to. His focus is on ending this war. It's been something he campaigned on and something he's been dedicated to from the beginning," he said.

"We're looking for our friends, especially like India, to help support that effort. But I think you'll have to stay tuned on how the bill gets implemented. But there is a broad national security waiver, so you can imagine also the president, there's a scenario, the president uses that as well," he added.

Venezuela back on the table

The official said India's options had been limited because Venezuelan and Iranian supplies had long been cut off.

"Now, with President Trump's incredibly successful operation in Venezuela, we are moving into a better position that countries like India are going to be able to get access to that market," he said.

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He said "Indians are very interested," noting that India once operated refineries in Venezuela. He added that restarting them would be complicated because of the damage the Nicolás Maduro government did to the industry.

The official also said the United States is now the world's largest exporter of liquefied petroleum gas (LPG) and the second-largest exporter of liquefied natural gas (LNG).

What happens next

The official said energy is discussed frequently between the two governments, including between External Affairs Minister S. Jaishankar and Secretary of State Marco Rubio. He said those conversations will continue.

"The demands are great, and the needs for oil are there. We are looking for alternatives," he said.

"But I would say before even the war, India had been looking to diversify when it came to energy for a long time. It's not a new concept. We just need to expedite it faster."

(With inputs from agencies)