'Hostile act against India': Fund manager on US bill threatening 100% tariffs

The US Senate's sanctions bill targeting countries that import Russian oil is a "hostile action against India", fund manager and India equity strategist Harsh Gupta Madhusudan said on Saturday.

"China, India, Slovakia, Hungary, Azerbaijan. These five countries have been named in the US sanctions bill, passed by the US Senate and going to the House, of upto 100% tariffs (as decided by Trump) for importing from Russia," Madhusudan said.

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He called the measure "effectively an anti-India bill" and questioned why other countries that continue to import Russian energy were not similarly targeted.

"Never mind the rest of Europe and America themselves import from Russia even today. The key point is this is effectively an anti-India bill," he said.

The Senate passed the Lindsey Graham Sanctioning Russia and Iran Act of 2026 by 86-11. The bill allows President Donald Trump to impose tariffs of up to 100% on goods from countries that are among the top five importers of Russian oil and gas.

China, India, Azerbaijan, Hungary and Slovakia currently make up that group.

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‘NO SPECIAL INDIA-US RELATIONSHIP’

Madhusudan said the legislation reflected the current state of India-US ties. He said Trump is talking up G2 with China and the other three countries are too small.

"This is the reality of India-US relations," he said. "A section of our elites needs a reality check, not that they will see what is right in front of their nose."

The fund manager also rejected the idea that India and the US have a special strategic relationship.

"There is no special India-US relationship or friendship, if there ever was one," he said.

According to Madhusudan, India's biggest economic leverage against the US lies in its technology market.

"We have one key economic leverage against DC: the carte blanche we have given to US Big Tech. Will we exercise it?" he said.

'HOSTILE ACT AGAINST INDIA'

Madhusudan said the fact that the bill would require congressional approval was significant. "Because this will be congressional authorisation there is no question of any US Supreme Court relief," he said.

He said it was less important whether Trump ultimately used the tariff provision before the November midterm elections.

"Whether or not Trump uses it before November midterms, probably unlikely, is not the point," he said. "This is a hostile action against India for something India has little control over."

RUSSIA OIL IMPORTS

Madhusudan also warned that reducing India's imports of Russian energy would have wider consequences.

"Now if India curbs Russia's energy imports until the Russia-Ukraine war is on, it will effectively mean either global oil prices go further up and/or China will just start importing more from Russia," he said.

"Given that oil is largely fungible, the impact is clear. But this is a hostile act."

WHAT THE BILL SAYS

The bipartisan bill, renamed after Republican Senator Lindsey Graham, who died on July 11, was championed by Graham and Democrat Richard Blumenthal.

After Graham's death following a trip to Kyiv, lawmakers from both parties pushed to advance the measure and honour his legacy as an ally of Ukraine.

"This bill forces those primary countries keeping Russia's economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy," said Darline Graham, Graham's sister, who was appointed to his Senate seat after his death.

The bill would also extend until 2031 the Iran Sanctions Act of 1996, which penalises companies that invest in Iran's energy sector.

It also seeks sanctions against Russian leaders and officials, including President Vladimir Putin, oligarchs and financial institutions.