September 18: US President Donald Trump has signed into law a Russia sanctions bill that gives his administration new authority to impose tariffs of up to 100% on countries that continue to purchase Russian oil and gas. The legislation could expose major buyers such as India and China to additional US trade measures, although the law does not automatically impose a 100% tariff on either country.
The law requires the administration to impose tariffs of up to 100% within 30 days on goods imported into the United States from countries that fall within specified categories, including the five largest importers of Russian crude oil or natural gas. It also covers countries that knowingly make new purchases of Russian energy after the law takes effect or rank among the top five countries facilitating sanctions evasion.
India and China are among the major buyers of Russian crude. However, the legislation does not specifically name either country as a target. The criteria for determining the relevant top-five groups leave significant discretion with the US administration over how the provisions are applied.
Broad Tariff and Sanctions Powers
The legislation, formally named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, targets Russia’s energy and defence sectors and its so-called shadow fleet of tankers accused of helping Moscow circumvent sanctions. The law also gives the president authority to waive tariffs or sanctions on national security grounds.
The House of Representatives approved the measure on September 16 after the Senate had passed it earlier. Trump subsequently signed it into law on September 18, completing a legislative process that had been delayed for more than a year.
The new authority expands the administration’s ability to use trade measures against countries maintaining significant economic links with Russia. At the same time, the waiver provision gives the White House flexibility over how aggressively to apply the new powers.
Implications for India
The legislation has created uncertainty for India because of its continued purchases of Russian crude. India has previously warned Washington that additional tariffs linked to Russian oil purchases could affect bilateral relations and has said that maintaining energy security remains a priority.
India is also an important exporter to the United States. Reuters reported that Indian goods shipments to the US reached $42.79 billion during April-August, up from $40.39 billion during the same period a year earlier. This makes any additional US tariff action potentially significant for Indian exporters.
However, the immediate effect of the new law remains uncertain. The legislation establishes the authority and criteria for potential action, but the administration still has to determine which countries meet the relevant conditions and how the provisions will be used.
Global Energy and Trade Concerns
The potential tariffs come at a sensitive time for global energy markets. Restrictions on major buyers of Russian oil could alter established trade flows and affect the availability and price of crude in international markets.
Reuters reported that Russian crude prices have already risen sharply in September amid increased Chinese demand and disruptions affecting Middle Eastern energy supplies. Any further restrictions on Russian energy trade could therefore have effects beyond the countries directly targeted.
Higher energy costs could also feed into transportation, manufacturing and consumer prices. This creates an economic consideration for governments deciding how far to use tariffs against Russian energy buyers.
What Happens Next
The legislation does not establish that India or China will automatically face a 100% tariff. Instead, it provides the Trump administration with a new legal mechanism to impose such duties if countries meet the conditions specified in the law.
For India, the issue now lies at the intersection of energy security, exports and relations with Washington. New Delhi will have to monitor how the US administration interprets the law, particularly the criteria used to identify countries subject to additional tariffs.
The next phase will therefore depend on decisions by the Trump administration rather than on the signing of the legislation alone. Until specific tariffs are announced, the scale of the direct impact on Indian exports remains uncertain.