Could two moves in Washington torpedo US trade deal with India?

US Ambassador to India Sergio Gor recently claimed that the US-India trade agreement is on the verge of finalisation and that “almost everything” about the agreement was done “in principle”.

However, even as Ambassador Gor was exuding confidence regarding the deal, two initiatives taken in Washington in just over a month have brought yet another round of tariff war at India’s doorstep. These initiatives have the potential of increasing friction between the two countries, and could even torpedo the deal.

The most egregious of these developments is theLindsey O Graham Sanctioning Russia and Iran Act of 2026, a bipartisan bill tabled in the US Senate, which has the backing of the US President.

This Act proposes imposition of tariffs of up to 100% on all goods from three sets of countries: the five largest importers of Russian crude oil; the five largest importers of Russian natural gas; and countries facilitating Russian oil sanctions evasion.

India, the second largest buyer of Russian crude oil, is an obvious target of the proposed excessive tariffs. This is a continuation of the actions successive US administrations have taken against the Russian Federation since its war against Ukraine.

The second development is Donald Trump’s proposal to impose 100% tariffs on generic medicines from 2028, unless the firms...

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