Trump Signs New Russia Sanctions Law With Tariff Powers Up to 100%
U.S. President Donald Trump signed a sweeping Russia sanctions bill into law on September 18, 2026, giving the administration new powers to increase economic pressure on Russia and potentially impose tariffs of up to 100% on goods from major buyers of Russian oil and gas.
The legislation, officially named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, targets Russia's energy and defence sectors and its so-called shadow fleet of tankers used to evade existing sanctions.
New Tariff Powers Target Russian Energy Buyers
Under the new law, the president is required to impose tariffs of up to 100% within 30 days on goods imported into the United States from the five largest importers of Russian crude oil or gas, as well as certain countries that knowingly make new purchases after the law takes effect or help Russia evade sanctions.
The legislation does not name India or China directly. Both countries are among Russia's largest oil customers, meaning their treatment under the new framework will depend on how the administration applies the law and defines the relevant categories.
Russia's Energy Sector in Focus
The law expands sanctions targeting Russia's energy industry and defence sector while also targeting vessels in Russia's shadow fleet.
The stated purpose is to increase economic pressure on Moscow by restricting revenue associated with energy exports and other activities connected to the war in Ukraine.
The White House confirmed that the legislation expands statutory sanctions, tariffs and prohibitions on Russia and extends existing sanctions relating to Iran.
India Faces a Potential Impact
India is among the largest buyers of Russian crude, making the legislation particularly relevant to Indian energy trade.
India has warned Washington that new tariffs could affect bilateral relations, while Indian refiners have expressed concerns about the possible effect on crude costs and supply security.
Importantly, the law does not automatically impose a 100% tariff on India today. It gives the U.S. administration authority to apply the tariff mechanism according to the conditions established by the legislation.
China Also Faces Uncertainty
China is another major purchaser of Russian energy.
Beijing has opposed what it describes as U.S. extraterritorial jurisdiction, while the new law leaves uncertainty over which countries will ultimately be placed within the tariff framework.
The absence of specifically named countries gives the administration substantial discretion in determining how the provisions will be implemented.
Law Named After Lindsey Graham
The legislation was renamed after Lindsey O. Graham, the Republican senator who died in July 2026 and had been a prominent supporter of tougher measures against Russia.
The bill passed the U.S. Senate in August and the House of Representatives on September 16 before receiving Trump's signature on September 18.
What Comes Next
The immediate focus will be on how the Trump administration implements the new tariff and sanctions provisions.
The law creates a potentially significant new mechanism for pressuring countries that continue buying Russian energy, while also giving the president authority to waive tariffs or sanctions on national-security grounds.
For India, China and other Russian energy customers, the next stage will depend on which countries Washington identifies under the legislation and whether exemptions or other arrangements are negotiated.
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