Trump Signs Russia Sanctions Bill, Granting Authority to Impose 100% Tariffs on India and China
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 becomes law, empowering Trump with broad discretion over tariffs on top energy buyers while the Kremlin warns enforcement could block peace talks.
President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on Friday, September 19, granting his administration sweeping authority to impose tariffs of up to 100% on countries purchasing Russian oil and natural gas. The bill, passed by the House 262-159 on September 16 and the Senate 86-11 in August, targets major Russian energy purchasers—chiefly China and India—along with entities supporting Russia's war in Ukraine and shadow tankers used to evade sanctions. The legislation expands direct sanctions on Russian officials, banks, and the defense sector while extending Iran sanctions through 2031. However, the law grants Trump wide discretion: tariffs are not automatic, and the president has 30 days to implement measures with waiver authority built in. India and China, which together account for roughly 70% of Russian energy exports, immediately signaled resistance. India's Ministry of External Affairs stated it would continue buying oil through "diversified sourcing" and warned such tariffs could damage bilateral ties, while China's Foreign Ministry called the sanctions unlawful and a violation of international law. The Kremlin warned that additional sanctions would "definitely complicate" efforts to achieve a Ukraine peace settlement. Ukrainian President Volodymyr Zelenskyy, by contrast, praised the bill as leverage against Russian negotiating leverage.
How could this affect you
Traced by who's actually in the path of this — not everyone is.
Likely
Indian exporters and oil refiners
If Trump imposes 100% tariffs on Indian goods for continued Russian oil purchases, input costs for crude rise while export margins compress, potentially raising domestic fuel prices ahead of regional elections and stressing government budgets that depend on cheap Russian oil to fund subsidies
Possible
Global energy markets and oil prices
Enforcement of the tariff authority could force India and China to abruptly reduce Russian oil imports, redirecting demand to Middle Eastern and other suppliers and creating spot-market volatility if applied within the 30-day implementation window
Likely
US-India strategic relations
If Trump deploys tariffs, India has explicitly stated it will take "all necessary measures" to protect trade and economic interests, risking escalation in a relationship where the US already imposed 50% tariffs on Indian goods in 2025 over Russian oil purchases
Possible
US-China bilateral talks
Trump is scheduled to meet Xi Jinping at the White House on September 24; analysts expect Washington to avoid raising tensions immediately before the summit, but the law's existence now gives Trump a tariff lever over China's energy strategy that could complicate future negotiations
Likely
Ukraine's negotiating position
The law provides economic tools to raise costs on Russia's war, but the Kremlin claims additional sanctions would block peace talks; Ukraine gains leverage in negotiations if Trump credibly threatens enforcement, but loses it if he declines to deploy tariffs on major economies
Sources
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