WASHINGTON | August 8, 2026
US Russia Sanctions Bill: India could face the risk of tariffs of up to 100% on goods exported to the United States because of its purchases of Russian energy if sweeping bipartisan legislation approved by the U.S. Senate becomes law and President Donald Trump chooses to use the new authority.
The Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by an overwhelming 86-11 vote on Friday, giving the legislation strong bipartisan momentum. But the measure is not yet law, and no new 100% tariff on India has automatically taken effect. It must first pass the House of Representatives and then be signed by Trump.
The bill represents a new congressional strategy for putting pressure on Russian President Vladimir Putin: rather than relying solely on sanctions against Moscow, lawmakers want to increase the economic cost for the countries that provide Russia with billions of dollars in energy revenue.
For India, that makes the legislation particularly significant because it remains one of the world’s largest purchasers of Russian crude.
Important Clarification: The 100% Tariff Provision Targets Russian Energy Buyers
The legislation’s title refers to both Russia and Iran, but there is an important distinction.
The provision authorizing tariffs of up to 100% is aimed at countries that are among the five largest purchasers of Russian crude oil or natural gas, as well as major jurisdictions facilitating Russian energy sanctions evasion.
The Iran provisions are separate. They are designed to prevent the expiration of U.S. sanctions authorities restricting financing for Iran’s energy and weapons sectors. The Senate sponsors’ official statement does not say that India’s purchases of Iranian oil would automatically trigger the same 100% tariff mechanism.
That distinction is important for accurately assessing the potential impact on India.
Why Could India Face a 100% US Tariff?
The revised legislation permits the president to impose targeted tariffs on imports from countries that rank among the biggest purchasers of Russian energy.
Senate aides identified China, India, Slovakia, Hungary and Azerbaijan among the five largest purchasers of Russian crude when the updated proposal was unveiled in July. China, France, Japan, Hungary and Belgium were identified among major Russian natural-gas importers.
The tariff ceiling is 100%.
That means goods imported into the United States from an affected country could theoretically be subjected to tariffs of as much as 100% if the legislation becomes law and the administration invokes the authority.
However, 100% is a maximum, not an automatic tariff rate.
Trump Would Gain Significant New Leverage
The legislation would give President Donald Trump another powerful economic tool at a time when tariffs have become a central element of his foreign and trade policy.
The bill authorizes the president to use targeted tariffs against major purchasers of Russian oil and gas in an effort to force those countries to reduce their dependence on Russian energy.
Supporters argue that the approach gives Washington leverage not only over Moscow but also over countries keeping Russian energy exports profitable.
Critics, however, fear it could also give Trump broad discretion over trade policy involving strategically important partners such as India.
What Is the New US Strategy Against Russia?
The basic strategy is to attack the financial foundation of Russia’s war effort.
Russia earns substantial revenue by selling crude oil and natural gas abroad. Western sanctions can restrict Russian banks, companies and individuals, but Moscow can continue generating income as long as major economies keep purchasing its energy.
The Senate bill seeks to change that calculation.
Instead of targeting Russia alone, it threatens economic consequences for major third-country buyers, effectively telling governments and companies: continued large-scale purchases of Russian energy could carry a price in their access to the U.S. market.
Supporters say reducing Russia’s energy revenues would weaken its ability to finance the war in Ukraine and increase pressure on Putin to negotiate.
What Else Would the Bill Do?
The legislation goes well beyond tariffs.
It would strengthen or mandate sanctions targeting:
- Senior Russian government officials, including Putin
- Russian oligarchs and their family members
- Russian banks and financial institutions
- State-owned enterprises
- Foreign companies supporting Russia’s defense-industrial base
- Major Russian energy projects
- Vessels associated with Russia’s shadow fleet
- Individuals and entities involved in sanctions evasion
The bill would also preserve sanctions authorities aimed at restricting financing for Iran’s energy and weapons sectors.
Why Was the Original 500% Tariff Cut to 100%?
The legislation originally proposed much more severe penalties.
An earlier version introduced by Graham and Democratic Sen. Richard Blumenthal envisioned tariffs of as much as 500% on countries purchasing Russian energy.
After roughly 15 months of negotiations, senators substantially narrowed the proposal. The revised plan caps potential tariffs at 100% and focuses them on the five largest buyers of Russian oil or natural gas and leading facilitators of energy sanctions evasion.
The compromise helped the proposal secure wider support and ultimately contributed to its overwhelming Senate passage.
Can Trump Give India an Exemption?
Yes. The legislation includes waiver authority.
The president could waive certain sanctions if the administration determines that doing so serves the U.S. national interest.
There are also provisions designed to protect countries with comparatively limited exposure to Russian natural gas. The revised proposal provides an exception for countries that import less than 15% of Russia’s total natural gas exports and are taking meaningful steps to reduce those imports.
For India, however, crude oil rather than Russian natural gas is the more relevant issue.
Why Are Some US Lawmakers Worried?
Despite strong bipartisan support for tougher measures against Moscow, the tariff provisions have generated resistance.
Some Democrats and Republicans worry that granting Trump additional tariff authority could lead to higher prices for American importers and consumers, worsen inflationary pressures and create fresh trade disputes with U.S. partners.
Democratic Reps. Gregory Meeks of New York and Don Beyer of Virginia have raised what they described as fundamental concerns about the expanded tariff power contained in the legislation.
Their concern is that a tool created to punish Russia could ultimately be used much more broadly as leverage in trade negotiations.
Could Those Concerns Block the Bill in the House?
Possibly.
The Senate’s 86-11 vote demonstrates unusually strong bipartisan support, but passage in the Senate does not guarantee approval in the House.
The House is on its summer recess and is expected to return on August 31. Lawmakers are likely to debate whether the strategic benefits of targeting Russian energy revenues outweigh the economic and political risks associated with granting the president additional tariff powers.
If the House changes the legislation, the two chambers would also have to resolve differences before a final version could reach Trump’s desk.
Why Is the Bill Named After Lindsey Graham?
The measure has been named after the late Republican Sen. Lindsey Graham of South Carolina, who spent more than a year campaigning for aggressive sanctions against Russia and secondary penalties on countries purchasing Russian energy.
Graham and Blumenthal had worked across party lines to develop the proposal.
Just before his death in July, Graham said an agreement had been reached with the Trump administration that could allow the long-delayed legislation to move forward. His Senate colleagues subsequently pushed ahead with the measure and presented its passage as part of his foreign-policy legacy.
What Does the Bill Mean for India?
For India, the biggest immediate issue is risk rather than an existing tariff.
Three steps would still have to occur before the legislation itself could produce new tariff consequences:
- The House must approve the legislation.
- Trump must sign it into law.
- The administration would then have to exercise the tariff authority against India.
Even if all three occur, the tariff level could be up to 100%, rather than necessarily 100%.
India’s status as a major buyer of Russian crude means New Delhi would nevertheless have strong reason to closely follow the bill’s progress.
A major U.S. tariff could affect Indian exporters, complicate India-U.S. trade negotiations and force New Delhi to balance the economics of discounted Russian energy against access to its largest overseas markets.
What Is Washington Trying to Achieve?
The new strategy reflects a broader shift in the sanctions debate.
Instead of merely freezing assets or prohibiting U.S. companies from doing business with Russian entities, lawmakers want to create powerful secondary economic pressure on countries that continue generating revenue for Moscow.
For Ukraine, supporters hope that shrinking Russian energy earnings will make it harder for Putin to sustain the war.
For India and China, the legislation raises a different question: how far is Washington prepared to use access to the enormous U.S. consumer market as leverage over their energy relationships with Russia?
The answer now depends largely on what happens when the bill reaches the House.
