The US Senate approved a bill on Friday that would allow President Donald Trump to impose tariffs of up to 100% on goods from countries such as India and China that continue to purchase Russian oil and gas. Proponents argue that this trade sustains Moscow’s economy and funds its war in Ukraine.
The Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by an 86-11 vote. Named after the late Republican Senator Lindsey Graham, a principal architect of the legislation, the bipartisan bill aims to increase economic pressure on Russia and Iran while targeting countries that conduct significant energy trade with Moscow. The bill would grant the US president the authority to impose tariffs of up to 100% on goods from the world’s top five purchasers of Russian oil or natural gas, potentially including India and China.
Proposed Sanctions
In addition to tariffs, the bill proposes sanctions against Russian President Vladimir Putin, senior political and military officials, financial institutions, energy projects, and other entities linked to Russia’s war efforts. It would also expand US sanctions to older and reflagged oil tankers that Russia allegedly uses to evade existing restrictions and continue generating revenue from oil exports. The overarching goal is to reduce the flow of money supporting Russia’s economy and military campaign.
Impact on India
The legislation allows the US president to impose tariffs on goods imported from countries that are among the top five buyers of Russian oil or natural gas. India, being one of the largest purchasers of Russian crude oil, faces significant implications. The measure is intended to compel countries to choose between continuing to buy discounted Russian energy and maintaining access to the US market.
Darline Graham, the late senator’s sister who was appointed to his seat, stated, “This bill forces those primary countries keeping Russia’s economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy.”
India’s Energy Purchases
India’s purchases of discounted Russian crude have surged since the onset of the Russia-Ukraine war in 2022. Traditionally, Russia was not a significant oil supplier for India, but as European nations reduced their purchases, Russian crude became available at substantial discounts. This shift has allowed Indian refiners to lower crude costs and secure supplies despite global energy market disruptions. The reliance on Russian oil has grown even more crucial amidst shipping disruptions through the Strait of Hormuz, which have affected energy supplies from the Middle East.
New Delhi has maintained that its energy purchases are guided by national interest, energy security, and the need for affordable and reliable supplies.
Current Tariff Pressures
The proposed legislation follows previous actions by Washington, which had already imposed additional charges on India’s purchases of Russian oil. However, these earlier measures did not deter Indian refiners from buying Russian crude. With ongoing conflicts in the Middle East creating uncertainty around energy supplies, Russian oil remains an important source for Indian refiners. In June 2026 alone, India’s imports of Russian oil rose by 34%.
Potential Consequences of a 100% Tariff
If a 100% tariff were imposed, Indian goods could become significantly more expensive for US importers, particularly impacting export-oriented sectors such as engineering, pharmaceuticals, chemicals, textiles, and auto components. US buyers might seek alternative suppliers if Indian products become considerably more costly, leading to weaker demand for Indian exports and tighter profit margins. This scenario could also prompt Indian companies to diversify their export markets and increase pressure on policymakers to negotiate with Washington.
Opposition to Tariff Powers
While the bill received broad support in the Senate, some lawmakers expressed concerns over granting Trump wider authority to impose tariffs. Critics argue that such tariffs could raise costs for American consumers and businesses amid rising living expenses. Senator Ron Wyden remarked, “We’ve got folks who are walking an economic tightrope here in America.” An amendment by Republican Senator Rand Paul and Wyden to remove the new tariff authority was defeated in the Senate. Senator Raphael Warnock, who raised concerns about the tariff provisions, stated he received a commitment from the Trump administration regarding safeguards, asserting, “We should not have to choose between putting a check on Putin’s aggression and putting a check on this president’s tariffs regime.”
Measures Against Iran
The legislation also targets Iran, seeking to extend the Iran Sanctions Act of 1996 until 2031 and maintain pressure on Iran’s energy sector. Thus, the bill combines measures against two countries that the US considers major geopolitical adversaries.
Exemptions and Next Steps
Countries could qualify for an exemption if they import less than 15% of Russia’s total natural gas exports and are actively working to reduce their dependence on Russian energy. The bill also grants the US president the authority to waive sanctions or restrictions if deemed in the US national interest.
The legislation will now move to the US House of Representatives, which is expected to consider it when lawmakers return later this month. The House must approve the bill before it can be sent to Trump for his signature, indicating that a significant legislative and diplomatic process lies ahead before any new tariffs take effect.