The United States has enacted a new sanctions bill that grants President Donald Trump the authority to impose tariffs of up to 100 per cent on goods from countries that purchase Russian oil or gas. The legislation, signed into law on Friday, gives the president considerable discretion to decide whether to apply these measures, according to former diplomat K.P. Fabian.
Fabian explained that the bill targets the five largest purchasers of Russian energy—China, India, Turkey, the European Union, and the combined group of Azerbaijan and Hungary. He said the president can choose to withhold higher tariffs if doing so would not serve U.S. national interests, thereby providing “a lot of spare cards to play.”
Regarding India, Fabian warned that the tariff provision could be used as leverage in ongoing trade negotiations. He argued that India would not be intimidated by the threat and urged the Ministry of External Affairs to summon the U.S. envoy to discuss the matter. The former diplomat also noted that China, another major importer, is unlikely to face a 100 per cent tariff because of the potential for retaliation and the upcoming meeting between President Trump and President Xi Jinping.
The bill, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, was passed by the House 262‑159 and the Senate 86‑11. It seeks to cut financial resources supporting Russia’s war in Ukraine by targeting officials, banks, energy interests, and foreign entities that facilitate Moscow’s military operations. The House Ways and Means Committee has directed tariffs of up to 500 per cent on Russian goods and allows for duties of up to 100 per cent on goods from countries covered by the Russian oil and gas purchase provisions, with the possibility of adding more countries after bi‑annual reviews by the U.S. Trade Representative.
