India Faces Tariffs in US Russia Sanctions

The US Senate has passed a bipartisan bill that could hit countries buying Russian oil and gas with tariffs of up to 100%, putting major buyers such as India and China in the spotlight.

The legislation, passed 86-11, has been renamed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 in honour of Republican Senator Lindsey Graham.

The bill gives President Donald Trump broad powers to impose tariffs of up to 100 per cent on goods from countries that rank among the top five importers of Russian oil and gas.

China, India, Azerbaijan, Hungary, and Slovakia are among the biggest buyers of Russian oil and gas and could face 100% US tariffs.

However, tariffs would not be automatic, as the bill gives Trump the discretion to impose, waive, delay, or modify the penalties based on US national interests.

Washington argues that continued purchases of Russian energy help Moscow generate revenue and sustain its war in Ukraine.

Besides targeting countries buying Russian energy, the bill proposes sanctions against Russian leaders, officials, oligarchs, and financial institutions.

It also extends the Iran Sanctions Act of 1996 until 2031 and expands measures targeting Iran’s energy, shipping, and financial sectors.

The legislation was championed by Graham and Democratic Senator Richard Blumenthal, with Graham’s sister, Darline Graham, saying the bill forces countries to make a choice between doing business with America or buying cheap Russian energy.

Some Democrats have raised concerns over the tariff powers the legislation could give Trump, with Congressmen Gregory Meeks and Don Beyer saying the bill creates sweeping new tariff authorities that the president could use.

They added that the bill would allow President Trump to dodge holding Russia accountable and impose yet more tariffs in his trade wars, leaving Americans to foot the bill.

After the vote, Blumenthal said Graham would be proud of what they’ve done, adding that the sanctions and tariffs will stop all who are complicit in the war of aggression against Ukraine.

India is likely to be closely watched because it has become one of the world’s biggest buyers of discounted Russian crude since the Russia-Ukraine war began in 2022.

But India would not automatically face a 100% tariff if the bill becomes law, as Trump would have the power to decide whether and how the penalties are imposed.

Any decision could also be influenced by the broader India-US strategic relationship, including defence, technology, Indo-Pacific cooperation, and efforts to counter China’s growing influence.

The bill now moves to the House of Representatives, and it could become a major US economic pressure tool against Russia and Iran, putting countries such as India and China in an increasingly difficult position over their Russian energy purchases.

For now, the bill’s passage in the Senate is a significant step.