100% Tariffs on Russian Oil Buyers? What the New US Sanctions Law Really Says

President Donald Trump on Friday signed H.R. 5334, the Lindsay O. Graham Sanctioning Russia and Iran Act of 2026, granting his administration broader powers to impose sanctions and tariffs concerning Russia while at the same time extending the Iran Sanctions Act.

The White House stated that the law authorizes and expands the statutory sanctions, tariffs, and prohibitions regarding Russia and also extends the current sanctions on Iran.

The aspect of the law enables the president to impose tariffs of up to 100 percent on goods coming from countries which satisfy certain conditions relating to the purchase of Russian crude oil or natural gas. The measure doesn’t impose a tariff on any country, and it is for the administration to decide how and whether to exercise this authority.

On Aug. 7, the Senate passed the measure with 86 votes in favor and 11 against, and on Sept. 16 the House approved it by 262 to 159, and Trump signed it after two days.

The law is named after the late Republican senator Lindsey Graham from South Carolina, who died on July 11 at the age of 71; his sister, Darline Graham Nordone, has been appointed to fill his seat in the Senate temporarily.

Law Expands Russia Sanctions and Tariff Powers

The law expands statutory sanctions related to Russia’s leadership, energy sector, financial institutions and defense industry, including measures targeting vessels associated with Russia’s so-called shadow fleet, and it also extends the Iran Sanctions Act of 1996 through 2031.

The tariff provision gives the president the ability to impose duties of up to 100% on imports from countries identified under the law’s Russian energy provisions. The legislation doesn’t directly name India or China as countries that must receive the tariffs.

The law also includes provisions for the periodic review of the countries included in the tariff provision, and the list of the five largest purchasers is to be reviewed every 180 days.

India and China Face Greater Trade Risks

India and China are among the largest purchasers of Russian crude and are associated with the tariff provision in congressional debate and subsequent reporting.

Democratic Sen. Richard Blumenthal, who co-authored the bill with Graham, was direct about the targets. “I want to be blunt. India and China are the main culprits since they purchase the vast majority of Russian oil and gas. They are fueling Putin’s war machine,” Blumenthal said.

Following the House vote, he addressed both countries directly. “To China and India: You better clean up your act. Buy your oil and gas somewhere else. Appeasement is not a strategy,” Blumenthal said.

Darline Graham Nordone, the late senator’s sister and his temporary successor in the Senate, said during the Senate debate, “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.”

The statements reflect the arguments made by supporters of the legislation, but they don’t change the law’s discretionary structure.

India Raises Concerns Over Energy Security

India has said it is closely monitoring the legislation and has raised its potential effects with U.S. officials.

Ministry of External Affairs spokesperson Randhir Jaiswal said on Sept. 18 that India had already conveyed its concerns to senior U.S. officials.

“We have conveyed at senior levels of the US administration the implications that this legislation could have on India’s energy security, on international energy markets, and on the overall relationship,” he added.

The MEA has also said India remains “firmly committed” to ensuring energy security for its 1.4 billion people and will continue using diversified sources based on market conditions. It said the government would take “all necessary measures” to protect India’s trade and economic interests.

India’s position is significant because Russian crude has become an important part of the country’s energy supply in recent years. The government’s stated position is that its energy sourcing decisions are based on national interests, diversified supplies and market conditions.

Tariff Implementation Depends on Trump Administration

The next step will depend on how the Trump administration exercises its authority to impose tariffs of up to 100%.

The legislation gives the administration discretion over the application of the tariff provision. As a result, signing the law does not by itself mean that Indian, Chinese or other imports will immediately face an additional 100% duty.

The administration’s implementation decisions could therefore determine the practical effect of the measure on trade with major Russian energy buyers.

The law also creates broader sanctions authorities aimed at Russian financial institutions, energy interests and vessels involved in sanctions evasion. The provisions operate alongside existing U.S. sanctions regimes rather than functioning solely through tariffs.

Law Extends Iran Sanctions Through 2031

The legislation also addresses Iran, and it extends the Iran Sanctions Act of 1996 for five years, moving its statutory expiration from 2026 to 2031.

The Russia-related provisions otherwise focus heavily on energy revenues, financial channels and shipping networks. The inclusion of Russia’s shadow fleet reflects the U.S. effort to target vessels and networks used to transport Russian oil outside conventional sanctions channels.

The legislation provides Washington with a tariff ceiling of 100%, but the actual rate, affected countries and timing will depend on decisions by the Trump administration.