US Senate has passed a bipartisan bill that could allow President Donald Trump to impose tariffs of up to 100% on imports from countries that are among the biggest buyers of Russian oil and natural gas, potentially putting India and China in the spotlight.
The Lindsey Graham Sanctioning Russia and Iran Act of 2026 was approved by an 86-11 vote. The legislation aims to increase pressure on Moscow by targeting countries that continue to purchase Russian energy and restricting Russia's ability to generate revenue from its oil and gas exports.
The bill is named after the late Republican Senator Lindsey Graham, a strong supporter of tougher sanctions against Russia.
Democratic Senator Richard Blumenthal, who also pushed for the legislation, said the measure sends a message that the people of Ukraine are not alone.
What does the bill mean for India?
The legislation does not impose a 100% tariff on India immediately. Instead, it would give President Trump the authority to impose tariffs of up to 100% on goods imported into the US from the world's five largest buyers of Russian oil or natural gas.
India is potentially affected because it has significantly increased its purchases of Russian crude in recent years. If the bill becomes law and the White House applies the maximum tariff to India, Indian products entering the US could face an additional duty of up to 100%.
For example, if an Indian product worth $100 is subject to a 100% tariff, the importer could face another $100 in tariff charges. This could make Indian goods more expensive in the US, potentially affecting exporters, businesses and demand.
However, the final impact will depend on whether Trump actually imposes the tariff, the rate selected, which products are covered and whether exemptions are granted.
Why is the US targeting Russian oil buyers?
The main objective is to reduce Russia's energy revenues, which Washington argues help fund the war in Ukraine. India and China have become major buyers of Russian crude, particularly after Western sanctions reshaped global energy markets.
The proposed legislation would also introduce sanctions targeting Russian officials, financial institutions, energy projects and the country's so-called shadow fleet of vessels accused of helping Moscow circumvent existing sanctions.
Are there exemptions?
The bill includes provisions that could offer exemptions or relief to countries that import less than 15% of their natural gas from Russia and are taking steps to reduce their dependence on Russian energy.
It also gives the US president broad authority to waive, delay or modify certain penalties if he determines that doing so is in the national interest.
What happens next?
The bill will now move to the US House of Representatives, which is expected to reconvene on August 31. It must pass the House before it can be sent to the White House for Trump's signature.
Until then, India is not facing a new 100% US tariff under this bill. The immediate significance is the possibility that Washington could gain a powerful new tool to pressure India and other major Russian energy buyers.
For New Delhi, the legislation could create a difficult trade-off between maintaining access to Russian crude and protecting India's large export relationship with the United States.
If the maximum tariff is eventually imposed, Indian exporters could face higher costs and weaker competitiveness in the US market.
