Trump Signs Russia Sanctions Bill, India Faces Tariff Risk

US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, granting the US government extended powers to implement sanctions and tariffs related to Russia’s energy purchases. According to the law, tariffs of 100% may be applied to those countries buying Russian oil or gas, or helping to evade sanctions, which may include some of the largest consumers like India and China. The White House announced the implementation of the new law, while Reuters stated that President Trump will have broad discretion concerning the use of the new tariff powers.

What Does the New Russia Sanctions Law Say?

The new law expands US sanctions against Russia in regard to its energy and defense sectors and Russia’s so-called shadow fleet of oil tankers that are used to evade current sanctions. In addition, it extends US presidents’ ability to impose tariffs on those countries that purchase Russian petroleum products.

Tariffs of up to 100% may be imposed by the US president on certain countries that purchase Russian crude oil or natural gas or help Russia to evade sanctions. The new tariff power will be valid for the next five years.

Why India and China Are Relevant

India and China have been among the top purchasers of Russian crude oil, which means that they could be included under the jurisdiction of the new tariff powers.

Nonetheless, the new law does not apply a 100% tariff to India and China because the report from Reuters states that the president has ample room to choose how to utilize the powers granted by the law.

India has even been wary of the repercussions such tariffs would have on their diplomatic and energy relationship.

Tariff Authority for Russian Imports

Aside from being granted the power to impose tariffs based on energy purchases made from Russia, the legislation also grants the power to place a tariff of up to 500% on all Russian imports into the US, as reported in the legislation cited in the provided document.

The legislation also extends the Iran Sanctions Act of 1996 until 2031.

Implications for International Energy Markets

This authority to impose tariffs can influence international energy trade, if the new authorities of the administration decide to apply them against Russia’s main consumers of oil.

For example, India is the third largest importer of oil in the world and has maintained its imports from various sources, one of which has been Russia. The Indian government has maintained that its energy security is a top priority, and Indian refiners have also voiced their concerns regarding the possible implications of these US tariffs.

However, there are many discretionary clauses included within this legislation.