US President Donald Trump has signed a new Russia sanctions law that could expose major buyers of Russian energy to tariffs of up to 100%.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 expands US sanctions against Moscow. It also gives Trump broader authority to impose tariffs on countries buying Russian oil and gas.
China and India are among the major buyers of Russian oil. Therefore, both countries could face increased trade pressure under the new legislation.
However, the law does not automatically impose a 100% tariff on either country. Instead, it gives the US president authority to apply tariffs under specified conditions.
What Does the New Russia Sanctions Law Target?
The legislation expands sanctions against Russia’s energy and defence sectors. It also targets Russian officials, banks, financial institutions and other entities.
The measures include restrictions involving President Vladimir Putin and other senior Russian officials. The legislation also targets Russian oligarchs, their family members and foreign persons connected to sanctioned activities.
Furthermore, the law targets Russia’s so-called shadow fleet of tankers. These vessels have been used to help Russia continue exporting oil while avoiding Western sanctions.
The legislation also includes measures against companies and foreign actors supporting Russia’s military activities. In addition, it extends sanctions involving Iran.
China and India Face Potential Tariff Pressure
The new law allows Trump to impose tariffs of up to 100% on imports from countries covered by its Russian energy provisions.
These provisions include major importers of Russian oil and gas. They can also cover countries that knowingly make new purchases of Russian energy after the law takes effect.
The law further covers countries among the top five helping Russia evade sanctions. However, it does not name specific countries in the legislation.
Consequently, China and India could potentially fall within its scope because of their significant Russian oil purchases.
There is also an exception for countries importing less than 15% of Russia’s natural gas exports. The exception requires those countries to have taken significant steps to reduce such imports.
Tariffs Would Not Start Automatically
The legislation gives Trump the authority to impose the additional tariffs. However, signing the law does not itself trigger a 100% tariff on China or India.
The law requires tariffs of up to 100% within 30 days in circumstances covered by its Russian energy provisions. It also gives the administration discretion over which countries meet the relevant criteria.
This distinction is important because the legislation does not provide a fixed list of countries facing the maximum tariff.
Instead, the administration will determine which countries fall within the provisions. The law also leaves questions about how certain categories, including the top-five lists, will be calculated.
House Passes the Bill 262-159
The Republican-led House of Representatives approved the legislation by 262-159 on September 16.
The measure had already passed the Senate before reaching Trump for his signature. It subsequently became law after Trump signed it on Friday.
The broad tariff powers also created divisions among Democrats. While many Democrats support pressure on Russia over the Ukraine war, some opposed giving Trump wider trade authority.
Meanwhile, Ukrainian President Volodymyr Zelenskyy welcomed the legislation and thanked US lawmakers for supporting the measure.
Zelenskyy said, “The best way to honour Lindsey’s memory would be to implement the provisions of this law fully and as quickly as possible,” referring to the late senator who championed the bill.
India Signals Continued Russian Oil Purchases
India has indicated that it will continue buying oil through diversified sourcing.
That position could become significant under the new US legislation because India remains one of the largest purchasers of Russian crude. China is also a major buyer of Russian oil.
The new tariff authority therefore creates another point of pressure between Washington and countries maintaining energy trade with Moscow.
Trump’s signing of the law also comes shortly before his planned meeting with Chinese President Xi Jinping in Washington.
For now, neither China nor India has automatically received a 100% US tariff under the legislation. Instead, the law creates a framework that allows the Trump administration to impose such tariffs under specified conditions.
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