WASHINGTON: US President Donald Trump has signed a sweeping Russia sanctions bill into law, opening the door to potentially massive tariffs on countries that continue buying Russian oil and gas. India and China, among the biggest buyers of Russian energy, could face tariffs of up to 100% under the new legislation.
The law, formally titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, gives Trump broad authority to impose tariffs on goods from the five largest purchasers of Russian crude oil or natural gas. The legislation does not specifically name India or China, but both are among the major Russian-energy buyers covered by the formula.
The move puts India’s trade relationship with Washington under fresh pressure. New Delhi has repeatedly defended its Russian oil purchases, citing energy security and the need for reliable and affordable supplies for its huge population. India has also warned that such US measures could affect bilateral ties and the international energy market.
The legislation also targets Russia’s energy and defence sectors, along with its so-called “shadow fleet” of tankers accused of helping Moscow evade sanctions. Trump will retain discretion over the tariff rate and implementation, meaning the maximum 100% duty is an authorization, not an automatic levy.
With Washington now armed with a congressionally approved tariff tool, India and China face a major new trade challenge over their continued Russian energy purchases. The next moves from the Trump administration could have significant consequences for US-India trade, global oil markets and energy prices.
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