Reject US Tariffs, Put Trade Deal on Hold: Congress' Anand Sharma to Govt

Anand Sharma Urges Government to Reject US Tariffs

Congress leader and former commerce minister Anand Sharma has called on the Indian government to reject proposed US tariffs targeting countries that continue to purchase Russian oil and to put the proposed India-US trade deal on hold until the tariff issue is resolved.

Sharma said the latest US measures have implications for India's energy security and argued that New Delhi should protect its ability to make independent decisions on trade and energy.

His comments were made after US President Donald Trump signed legislation that gives the US administration the ability to impose tariffs of up to 100% on countries purchasing Russian oil. India is among the countries that could be affected by the measure.

What Did Anand Sharma Say?

Sharma, a Congress Working Committee member and former commerce minister, criticised the proposed tariff regime and called on the government to take a firm position in response.

He argued that the measures were inconsistent with the United States' obligations under the World Trade Organization framework. Sharma also questioned why certain US imports, including uranium and fertilisers, were excluded from the legislation while countries buying Russian oil could face additional tariffs.

Sharma described the proposed approach as selective and discriminatory. These characterisations are his political assessment of the US measures.

Congress Wants India-US Trade Deal Put on Hold

The main demand from Sharma is that India should pause the signing of the proposed India-US trade agreement.

He argued that negotiations should not proceed while the tariff question remains unresolved, particularly if India could face substantially higher duties because of its purchases of Russian oil.

Sharma described the proposed agreement as "unequal" and said the government should wait until the tariff issues are fully addressed.

The demand comes at a sensitive stage for bilateral trade negotiations, with tariff policy, market access and India's energy purchases from Russia becoming increasingly interconnected.

Why Are Russian Oil Purchases Central to the Dispute?

India remains a major importer of crude oil and has continued purchasing Russian oil as part of its broader strategy to secure energy supplies.

The United States has been seeking to increase economic pressure on Russia over its war with Ukraine. New US legislation allows the administration to impose significant tariffs on countries that purchase Russian oil.

India has objected to the potential impact of such measures and has said that energy security remains an important national consideration. Reuters reported that Indian officials have warned that the tariff threat could strain bilateral relations while refiners are concerned about the effects on oil prices and margins.

Potential Impact on India's Energy Security

Sharma argued that tariffs connected to Russian oil purchases could have consequences beyond trade.

India imports most of the crude oil it consumes, making the price and availability of international crude important for the domestic economy.

If restrictions make Russian crude significantly more expensive or difficult to access, Indian refiners could need to source additional supplies from alternative markets. The eventual impact would depend on global oil prices, availability, shipping costs and the terms of any exemptions or waivers.

Recent disruptions to global energy supplies have added to concerns about crude availability and prices.

Sharma Raises WTO Concerns

A major part of Sharma's argument concerns the relationship between US domestic legislation and Washington's international trade commitments.

He said that a domestic US law cannot override commitments made under the WTO framework and referred to previous WTO disputes involving US trade measures.

Whether particular US measures are consistent with WTO obligations is ultimately a matter of legal and trade-policy analysis and could depend on the precise design and implementation of the tariffs.

Sharma's comments represent Congress's position on the issue rather than a WTO ruling on the latest legislation.

Congress Questions Different Treatment of Countries

Sharma also criticised what he described as differential treatment of countries that maintain trade relationships with Russia.

He specifically referred to Turkey, Hungary and Slovakia, arguing that the proposed punitive tariff approach would not apply to them in the same manner.

The comparison forms part of Congress's argument that India should not accept additional tariffs without addressing the basis and conditions of the US policy.

India-US Trade Talks Face a New Complication

The tariff dispute adds another complication to ongoing India-US trade negotiations.

The two countries have been working towards a broader trade agreement covering areas such as tariffs, market access and bilateral trade.

Recent US tariff measures linked to Russian oil purchases could make negotiations more difficult because the issue extends beyond conventional market-access discussions.

The proposed trade agreement therefore needs to be viewed alongside wider developments in energy, geopolitics and US trade policy.

India Has Also Been Looking to Diversify Trade

India has been seeking to strengthen trade relationships with countries beyond the United States.

The India-New Zealand free trade agreement, signed in April 2026, is scheduled to come into force on October 20 after ratification by both countries. The agreement will provide Indian exporters with expanded access to the New Zealand market and forms part of India's broader efforts to diversify export opportunities.

Trade diversification can reduce dependence on any single market, although the US remains an important destination for Indian goods and services.

What Could Higher US Tariffs Mean for Indian Exporters?

Higher US tariffs could affect Indian exporters by increasing the cost of Indian products in the American market.

The impact would vary considerably by industry. Exporters with limited pricing flexibility could face pressure on margins, while companies might attempt to absorb part of the tariff or pass some of the additional cost to US buyers.

Sectors with high exposure to the US market would potentially face greater consequences than businesses with more diversified export destinations.

The eventual effect would depend on the tariff rate actually applied, product-specific exemptions and the ability of companies to adjust supply chains and pricing.

Energy and Trade Policy Are Becoming Linked

The current dispute illustrates how trade policy and energy policy can increasingly overlap.

India's decision to purchase Russian oil is primarily connected with energy supply and pricing considerations, while Washington's response is linked to its broader geopolitical strategy.

This creates a policy challenge for New Delhi because decisions affecting crude imports can have implications for trade access, diplomatic relations, inflation and the domestic economy.

Government's Options

India could respond to the US measures through several channels, including diplomatic negotiations, requests for exemptions, trade consultations and discussions over the terms of the proposed bilateral agreement.

The government could also continue diversifying crude suppliers and export markets.

The precise response will depend on how the US implements the tariff provisions and whether exemptions or negotiated arrangements become available.

What Happens to the India-US Trade Deal?

For now, the proposed trade agreement remains part of ongoing negotiations.

Sharma's demand is that India should not sign the agreement until the tariff issue has been resolved. That is a political recommendation from Congress rather than a government decision.

The outcome of negotiations will depend on discussions between Indian and US officials and on how the two sides address tariffs, market access, energy-related measures and other outstanding issues.

Key Issues at a Glance

IssueCurrent PositionCongress' demandReject proposed US tariffs and pause the trade dealCongress leader making the demandAnand SharmaMain concernTariffs linked to Russian oil purchasesPotential tariffUp to 100% under the US legislationIndia's concernEnergy security and trade impactTrade negotiationsIndia-US agreement remains under discussionSharma's WTO argumentUS domestic measures should respect WTO commitmentsBroader issueTrade, energy and geopolitical policy are increasingly connected

What Happens Next?

The immediate focus will be on how the United States implements the new tariff authority and whether India can secure exemptions or other arrangements.

Indian and US officials are expected to continue discussions on trade and tariff issues. The response from New Delhi will also need to balance energy-security requirements with the importance of maintaining access to the US market.

For exporters and importers, the eventual tariff structure and any exemptions will be more important than the current political statements because they will determine the actual commercial impact.

Bottom Line

Congress leader Anand Sharma has urged the Indian government to reject proposed US tariffs connected with Russian oil purchases and put the India-US trade agreement on hold until the tariff dispute is resolved. He has argued that the measures could threaten India's energy security and questioned their compatibility with US WTO commitments.

The demand comes as India faces a complicated trade and energy environment. The US tariff threat could affect Indian exporters and raise concerns for refiners, while India's continued reliance on imported crude makes energy security a significant consideration.

Whether the proposed tariffs are ultimately imposed on Indian goods, and on what terms, will depend on US implementation and ongoing diplomatic and trade negotiations. For now, Sharma's call represents Congress's position on how India should respond to the latest US trade measures.