A bill has passed the US Congress granting President Donald Trump the authority to impose tariffs of up to 100% on countries that purchase energy from Russia. Following Senate approval, the bill passed the House of Representatives with a vote of 262–159. It now awaits President Trump’s approval.
Titled the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” the bill includes provisions for sanctions against Russian officials, the energy sector, and the “shadow fleet” used for oil transport, alongside the option to impose steep tariffs on nations purchasing energy from Moscow.
An amendment to the bill explicitly names ten countries, including India, China, the United Arab Emirates, and Turkey. However, this does not mean a 100% tariff will be immediately applied to Indian goods; such tariffs could only be imposed if President Trump exercises this authority after the bill becomes law.
India’s imports of crude oil from Russia have risen recently. Consequently, the prospect of new US tariffs has created fresh uncertainty regarding India’s economy and bilateral trade relations. Economist Aditi Nayar suggests that higher US tariffs and the associated uncertainty could negatively impact India’s economic growth.
Previously, an additional 25% US tariff had been imposed on Indian goods due to the purchase of Russian oil. That additional tariff was withdrawn in February 2026, and the reciprocal tariff on Indian goods was reduced to 18%.
If the powers granted by the new legislation are exercised, the pressure of US tariffs on India could intensify. However, the ultimate impact will depend on whether the bill becomes law and whether President Trump actually utilizes the authority it provides.
