HighLights
  1. US House approves Russia sanctions bill with tariff powers.
  2. President can impose 100% tariffs on Russian oil buyers.
  3. India, China among potential targets for new US tariffs.

Russia Sanctions Bill: The US House of Representatives this week approved a sweeping Russia sanctions bill that will give President Donald Trump the power to impose tariffs of up to 100 per cent on countries that continue to buy Russian oil and gas. The bill, Lindsey O Graham Sanctioning Russia and Iran Act of 2026 is expected to be signed by Trump on Friday and will officially become federal law.

The development has raised concern among major economies as the legislation authorises the US President to impose tariffs of up to 100 per cent on exports to the US from the top five global purchasers of Russian energy or military equipment, as well as nations facilitating sanctions evasion. This provision directly targets heavy buyers of Russian crude oil like China and India.

What’s In The Bill?

While it mainly applies economic pressure on Russia by targeting its energy revenue, financial networks, blocking visas, targeting shadow-fleet oil tankers, banning transactions with Russia's MIR payment system, it also targets countries trading with Moscow. Section 113 of the bill creates a mechanism under which qualifying countries can face additional US import duties of more than 0 per cent and up to 100 per cent.

Who Will Face Tariffs?

The bill clearly states that within 30 days of enactment, the President shall increase the US duty on all goods imported into the US from a qualifying country to a rate of up to 100 per cent. The legislation sets out specific conditions for identifying such a country.

One category covers a country that knowingly makes new purchases of Russian crude oil or natural gas after 30 days from enactment and was among the five largest importers, by volume, of Russian crude oil or natural gas during the preceding 12-month period. A second category covers countries that are among the top five countries facilitating Russian oil sanctions evasion during the relevant 12-month period. 

ALSO READ: US Likely To Delay Tariffs On Excess Capacity Until Trump-Xi Meet; Is India At Risk Of New Levies?

Who May Be Exempted?

The bill contains a specific exception concerning Russian natural gas. A country can avoid the duty with respect to imports of natural gas if its Russian natural-gas imports during the relevant 12-month period were less than 15 per cent of Russia's total annual natural-gas exports.

How Can India Be Targeted?

There are concerns that India may have to face fresh tariffs as Russian crude has become a very large part of India's oil imports. According to data cited by the Global Trade Research Initiative, India imported USD 40.8 billion worth of Russian crude in FY2026, with Russian oil accounting for about 30.3 per cent of India's total crude imports.

That makes India a possible candidate for the provision concerning the five largest importers. However, it does not mean that India will automatically be hit with a 100 per cent tariff. The legislation requires the US administration to examine the relevant 12-month import data and determine which countries fall within the statutory categories.

ALSO READ: From 26% To 10 & Now 100% Tariff Threat: Inside The 18-Month US-India Trade Rollercoaster

You May Also Like To Watch:


Also In News