NEW DELHI: US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, giving his administration expanded powers to impose tariffs of up to 100% on countries that continue significant purchases of Russian oil and gas. India and China, among the major buyers of Russian crude, could therefore face higher US duties.
The legislation was signed two days after the US House of Representatives approved it by a 262 to 159 vote. The Senate had passed the measure earlier. The law targets Russia’s energy and defence sectors, financial institutions, senior officials and the so-called shadow fleet used to circumvent sanctions.
The legislation authorises tariffs of up to 100% on imports from countries covered by provisions targeting purchases of Russian oil and gas. It also allows tariffs of up to 500% on certain Russian goods. The measure gives the US administration considerable discretion in determining which countries and transactions fall under the tariff provisions.
For India, the law does not automatically impose a 100% tariff. Instead, it creates a legal route for the Trump administration to introduce such duties under specified conditions. India is currently among the largest purchasers of Russian crude, making it one of the countries that could be affected by the new powers.
The development adds another layer to India-US trade relations, which have faced tariff disputes over New Delhi’s Russian energy purchases.
India has maintained that protecting energy security for its population remains a priority and that its crude sourcing is based on market conditions and diversification. New Delhi has also indicated that the broader implications of measures targeting its Russian oil trade have been discussed with US officials.
The immediate impact on Indian exporters will depend on whether and how the Trump administration exercises the tariff powers provided under the new law.
