Trump Signs Russia Sanctions Law Granting Authority for Up to 100% Tariffs on Indian Goods
The Lindsey O. Graham Sanctioning Russia and Iran Act gives the US president broad discretion to penalize countries buying Russian oil, directly targeting India's energy imports and threatening a destabilized trade relationship.
President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act on September 18, granting the administration authority to impose tariffs of up to 100 percent on countries within the top five purchasers of Russian crude oil or gas. India, one of the world's largest buyers of Russian energy, is explicitly vulnerable under the measure, though the law does not automatically trigger maximum duties. The legislation allows the president discretion in setting tariff rates based on conditions including whether countries meet exceptions for reduced imports. Trump's signature follows congressional passage: the Senate approved the bill 86-11 in August, and the House passed it 262-159 on September 16. This new authority arrives as India-US trade relations have already grown turbulent. In August 2025, Trump imposed an additional 25 percent tariff on Indian goods for continued Russian oil purchases, raising total duties on many Indian exports to 50 percent. That February 2026, both countries announced a framework agreement reducing reciprocal tariffs from 25 percent to 18 percent—a deal that never fully materialized. Indian officials have consistently argued that energy security is a sovereign necessity for a nation of 1.4 billion people, with Russian crude comprising roughly one-third of India's total oil imports as of fiscal year 2026. Indian exporters currently face uncertainty over potential application of new tariff authority. The US is India's largest trading partner, accounting for roughly $42.8 billion in merchandise exports during April-August 2026 alone. Sectors heavily exposed include pharmaceuticals, engineering goods, precious metals, and telecom instruments.
How could this affect you
Traced by who's actually in the path of this — not everyone is.
Likely
Indian exporters in pharma, metals, and engineering sectors
If Trump uses new tariff authority against India over Russian oil purchases, exporters already operating under 50% prior duties could face tariffs approaching 100%, reducing US market competitiveness and forcing repricing or margin compression.
Likely
Indian refiners and fuel consumers
If tariffs on Indian goods reach punitive levels, India faces pressure to rapidly diversify energy sources away from Russia. Alternative suppliers (Saudi Arabia, Venezuela, Nigeria) typically command higher shipping costs and procurement premiums, which could raise domestic fuel prices.
Direct
US companies importing Indian pharmaceuticals and goods
If tariffs exceed current levels, importers will face higher input costs, potentially translating to higher consumer prices on generic drugs, electronics, and jewelry in the US market.
Possible
India-US defense and technology partnerships
Economic coercion over energy policy could strain the strategic partnership both nations have built, potentially reducing cooperation in defense, semiconductor supply chains, and counter-China initiatives.
Sources
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