Trump Signs Russia Sanctions Law, India and China Face Risk of Up to 100% US Tariffs
US President Donald Trump has signed into law a sweeping sanctions package targeting Russia and Iran, giving his administration expanded powers to impose tariffs of up to 100 per cent on countries that purchase Russian oil and gas, potentially putting major buyers including India and China under pressure.
The legislation, formally titled the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” was signed by Trump on Friday, September 18, two days after the Republican-led US House of Representatives approved the measure by 262 votes to 159. The US Senate had already passed it in August by an 86-11 vote.
The new law gives Trump authority to impose tariffs of up to 100 per cent on goods imported into the United States from the five largest purchasers of Russian crude oil or natural gas. India is currently among the major buyers of Russian energy, while China is also a major customer, making both countries potential targets of the new tariff mechanism.
However, the signing of the law does not automatically mean that India or China will immediately face a 100 per cent tariff. The legislation gives the US president substantial discretion over when and how the measures are applied. Reuters reported that the law provides Washington with new powers to target major Russian energy purchasers and countries helping Moscow evade sanctions.
The legislation goes beyond tariffs on Russian oil buyers. It targets Russian officials, banks, financial institutions, energy interests and the so-called “shadow fleet” of tankers accused of helping Russia continue exporting oil while circumventing Western sanctions.
The legislation also authorises tariffs of up to 500 per cent on Russian goods, while the separate provisions concerning major purchasers of Russian oil and gas allow duties of up to 100 per cent on their exports to the United States.
India has become one of the largest purchasers of Russian crude since the Ukraine war, with discounted Russian oil becoming an important component of its energy imports. New Delhi has previously defended its right to secure energy supplies and has warned that additional US tariffs could affect bilateral economic relations.
The new US law therefore creates a potential dilemma for India: continuing large-scale purchases of Russian energy could expose Indian exports to additional US tariffs, while reducing Russian oil imports could affect India's energy costs and supply arrangements.
China faces a similar issue because of its extensive energy and economic relationship with Russia.
The legislation represents a significant expansion of the US president's authority to use tariffs as a tool against countries maintaining economic ties with Russia. Reuters reported that the tariff powers could have consequences beyond the current administration because some of the measures could remain in place for an extended period.
The law also extends existing US sanctions against Iran and forms part of Washington's broader effort to restrict revenues flowing to Russia and increase economic pressure over the Ukraine war.
For India and China, the immediate issue is therefore not an automatic 100 per cent tariff, but the fact that the Trump administration now has a statutory mechanism that could be used to impose such duties on major buyers of Russian oil and gas.
