US President Donald Trump has signed a new Russia sanctions law that gives his administration broader authority to impose tariffs on countries that continue purchasing Russian oil and natural gas.
The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, expands US sanctions against Russia and Iran while creating a mechanism for imposing tariffs of up to 100% on certain countries buying Russian energy.
India and China are among the major purchasers of Russian crude and could therefore be affected by the new provisions. However, the signing of the law does not mean that a 100% tariff has automatically been imposed on Indian or Chinese goods.
Trump Signs Russia Sanctions Law
Trump signed the legislation on September 18, 2026, after it cleared both chambers of the US Congress.
The Senate had approved the measure by an 86-11 vote in August, while the House of Representatives subsequently passed it by 262-159. The legislation was named after the late Republican Senator Lindsey Graham, who had been a prominent supporter of stronger measures against Russia.
The law expands sanctions targeting Russia’s energy and defence sectors, financial interests and vessels associated with the country’s so-called shadow fleet. It also extends existing US sanctions authorities relating to Iran.
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How the 100% Tariff Provision Works
One of the most closely watched parts of the legislation is its tariff authority.
Under the new law, the US president can impose tariffs of up to 100% on imports from certain countries that purchase Russian oil or natural gas or assist Russia in avoiding sanctions.
The legislation provides for tariffs involving the five largest importers of Russian crude oil or gas, along with countries that knowingly continue certain purchases after the law takes effect or are identified as helping Russia circumvent sanctions.
This distinction is important because the legislation creates authority to impose tariffs, rather than automatically applying a 100% levy to every product imported from India or China.
Why India Is in Focus
India has remained a major buyer of Russian crude because Russian oil has been an important source of energy supplies for the country.
The new US legislation therefore creates a potential trade issue between Washington and New Delhi.
Following the House passage of the bill, India’s Ministry of External Affairs said that India remains committed to maintaining energy security and has already raised concerns about the possible effects of the US measures with American officials.
New Delhi also said it would take necessary steps to protect its trade and economic interests and work with Indian trade and industry bodies on the implications of the legislation.
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China Could Also Be Affected
China is another major buyer of Russian energy and has also been mentioned in reporting about the potential impact of the legislation.
The law is intended to put economic pressure on countries whose purchases of Russian energy continue to provide revenue to Moscow.
China has opposed what it describes as US efforts to apply its jurisdiction beyond its borders, adding another potential point of tension in international trade relations.
Will India Immediately Face a 100% US Tariff?
Not necessarily.
The signing of the law should not be interpreted as an immediate 100% tariff on all Indian exports to the United States.
Instead, the legislation gives the Trump administration additional authority to introduce tariffs under specified circumstances. The exact countries affected and the extent of any tariffs will depend on how the administration applies the law.
Reuters reported that the legislation contains broad language and does not establish completely clear criteria for identifying every country that could ultimately face the tariffs.
What Could It Mean for India-US Trade?
If the United States eventually applies additional tariffs to Indian products under the new law, Indian exporters could face higher costs when selling goods in the US market.
The consequences would depend on several factors, including:
- The level of any tariff actually imposed
- Which products are covered
- How long the measures remain in effect
- India’s response
- Future US-India trade negotiations
- Developments in India’s purchases of Russian energy
The potential impact could extend beyond individual exporters because changes in tariffs can affect pricing, supply chains and trade flows.
Why Russian Oil Is Central to the Issue
The US measures are part of a broader effort to restrict Russia’s ability to generate revenue from energy exports.
Russia’s oil and gas sector remains an important part of its economy. Western governments have introduced sanctions and other restrictions since Russia’s full-scale invasion of Ukraine in 2022.
The latest US legislation attempts to increase pressure not only on Russia itself but also on countries whose continued purchases of Russian energy could support those revenues.
India’s Energy Security Concerns
For India, the issue involves more than trade with the United States.
India is one of the world’s largest energy-consuming economies, and maintaining reliable and affordable supplies is a major consideration in its energy policy.
The Indian government has indicated that it will continue to focus on energy security while assessing developments in international markets and US policy.
India has also said it can work with diversified sources of energy supplies as market conditions change.
What Happens Next?
The immediate focus will be on how the Trump administration uses the authority provided by the new law.
Markets, exporters and governments will be watching for further US decisions concerning countries that continue to purchase Russian oil and gas.
For India, the issue could become an important part of ongoing discussions over bilateral trade, energy supplies and economic relations with the United States.
For consumers and businesses, the actual effect will depend on whether additional tariffs are imposed, which products are covered and how India and other affected countries respond.
Key Takeaway
Trump’s signing of the Russia sanctions legislation marks a new stage in the US campaign to pressure Russia and countries purchasing its energy.
The law allows tariffs of up to 100% in specified circumstances, and India and China are among the countries that could potentially be affected because of their Russian energy purchases. However, the signing itself does not automatically impose a 100% tariff on Indian or Chinese goods.
The next major development will be how the US administration implements the new tariff authority and how affected countries respond.