US President Donald Trump has signed a Russia sanctions bill into law, giving his administration the authority to impose tariffs of up to 100 per cent on countries that buy Russian oil and gas.
The legislation puts major Russian energy buyers, including India and China, at risk of additional US tariffs. However, the law does not automatically impose a 100 per cent tariff on either country. The actual tariff would depend on whether Trump chooses to exercise the authority granted under the legislation.
The signing came two days after the Republican-led US House of Representatives passed the sweeping sanctions package by 262-159.
The legislation, known as the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, is aimed at reducing the financial resources supporting Russia’s war against Ukraine.
What does the Russia sanctions bill contain?
The new law targets Russian officials, banks, energy interests and foreign entities accused of supporting Moscow’s military operations.
It also provides for tariffs of up to 500 per cent on Russian goods. Separately, countries covered by provisions targeting purchases of Russian oil and gas could face duties of up to 100 per cent.
The legislation also includes sanctions against Russian President Vladimir Putin and senior members of the Russian government.
Why India faces a 100% tariff threat
India is among the major buyers of Russian crude oil and could therefore be affected by the new tariff authority.
An amendment proposed by Democratic Congressman Steny Hoyer sought to explicitly identify 10 countries — China, India, the UAE, Turkiye, Singapore, Azerbaijan, Kazakhstan, Hungary, Kyrgyzstan and Slovakia — as eligible for tariffs of up to 100 per cent under the secondary tariff provisions.
However, the amendment itself does not impose a 100 per cent duty on India.
Instead, the legislation gives Trump the power to impose such tariffs if he decides to use it. The eventual impact on Indian exports will depend on the tariff rate, if any, announced by the US administration.
What India said on Russian oil purchases
India had responded to the passage of the sanctions bill by reiterating its focus on energy security.
The Ministry of External Affairs said India remains committed to ensuring energy security for its 1.4 billion people and would continue to diversify its sources of energy based on changing market conditions.
The ministry also said India’s oil trade with Russia had been discussed at high levels with US officials in recent months and that New Delhi had clearly conveyed the potential implications for bilateral relations and the international energy market.
Previous US tariffs on India
The latest development comes after earlier tariff tensions between India and the US over Russian crude imports.
According to the report, Trump had previously imposed an additional 25 per cent tariff on Indian imports of Russian crude, on top of a 25 per cent reciprocal tariff. The additional tariff was removed in February 2026, while the reciprocal tariff was reduced to 18 per cent under a US-India trade framework.
The new law therefore creates another potential source of pressure on India-US trade relations, although the final effect will depend on how the Trump administration uses the tariff authority.