"Unilateral secondary sanctions undermine the rules-based trading order." Examine with reference to US tariffs linked to India's Russian oil imports.
New · District CollectorCan you hold the district for 72 hours?Floods, a heatwave, an outbreak, a grievance queue. Take the decisions, see the consequences.Play →Secondary sanctions punish third countries for trading with a sanctioned state. In August 2025, the US added a 25% "Russia-oil" penalty to its reciprocal tariff. This took duties on many Indian goods to 50% [6]. The measure was unilateral and outside the WTO. It shows that such sanctions largely erode the rules-based trading order.
How the US tariffs undermine the order
- Breaks non-discrimination: Singling out India for its choice of oil supplier goes against GATT's Most-Favoured-Nation (MFN) principle. The tariff responds to foreign-policy conduct, not to any trade practice.
- Trade used as coercion: The extra 25% was lifted "in recognition of India's commitment to stop purchasing Russian Federation oil" [2]. India's sovereign energy choices became a bargaining chip in a trade deal.
- Extraterritoriality written into law: The Lindsey O. Graham Sanctioning Russia and Iran Act (2026) targets "major purchasers" of Russian oil and gas [1]. A domestic US law is being applied to other countries.
- Double standards: The MEA pointed out that the EU imports Russian LNG and the US imports Russian uranium hexafluoride and fertilisers [3]. In October 2026, OFAC itself authorised imports of Russian-origin diesel [4]. Enforcement that spares the enforcer loses legitimacy.
- Weak remedy: The WTO's security exception (GATT Art. XXI) can be reviewed by a panel (DS512), but the US rejected that reasoning [5]. With the Appellate Body paralysed, smaller states have little recourse.
The counter-view
- Sanctions try to cut off the money funding Russia's war. A UN Security Council deadlocked by vetoes leaves few multilateral options.
- Art. XXI does allow security measures. The DS512 panel upheld Russia's own measures under it [5].
Way forward
- Legal: India should record objections at the WTO and push to restore the Appellate Body as part of WTO reform.
- Diplomatic: India should cite the US diesel licence [4] to seek a formal waiver, and build Global South consensus through BRICS and the G20.
- Economic: India should diversify crude suppliers and expand its strategic petroleum reserves to reduce its exposure.
Unilateral secondary sanctions replace agreed rules with the power of one state, as the India episode shows. Security concerns are real, but they need to go through multilateral, non-discriminatory channels. India's strategic autonomy and a fair multilateral system both depend on that. India can defend that principle through steady diplomacy and greater energy resilience, in line with SDG 7 (affordable energy) and SDG 17 (global partnership).
Sources
- 1US Senate Foreign Relations Committee: Chairman Risch statement on House passage of the Russia sanctions bill (2026)the Sanctioning Russia and Iran Act targets those enabling Russia's war and major buyers of its energy
- 2White House Fact Sheet: The United States and India Announce Historic Trade Deal (Feb 2026)extra 25% tariff removed in return for India's commitment on Russian oil
- 3DD News: MEA defends India's oil imports from Russia, calls US and EU criticism "unjustified, unreasonable" (Aug 2025)EU LNG and US uranium and fertiliser imports from Russia
- 4US Treasury OFAC: Issuance of Russia-related General License 135 (9 Oct 2026)authorises the sale and import of Russian-origin diesel
- 5WTO: DSB adopts panel report in *Russia – Traffic in Transit* (DS512), 26 Apr 2019Art. XXI open to review; Russia's measures upheld; US criticised the reasoning
- 6PIB: India Achieves Landmark Trade Victory (Feb 2026)tariffs on Indian exports cut from 50%