US President Donald Trump has signed into law the Russia sanctions bill, formally titled the Lindsey O Graham Sanctioning Russia and Iran Act of 2026.

The legislation authorises tariffs of up to 100 per cent on countries continuing to import Russian oil and gas, placing India and China directly under threat of punitive trade measures.

The signing came just two days after the Republican-led House of Representatives passed the bill by a vote of 262–159. The measure is named after Senator Lindsey Graham, remembered as one of Ukraine’s strongest defenders in Washington, who passed away in July shortly after returning from Kyiv.

The law seeks to restrict the financial flows sustaining Russia’s war against Ukraine. It targets Russian officials, banks, energy interests, and foreign entities aiding Moscow’s military operations. Trump now holds discretionary authority to impose tariffs on nations maintaining energy ties with Russia, with the intention of reducing global dependence on Russian oil and gas.

According to the House Ways and Means Committee, the legislation directs tariffs of up to 500 per cent on Russian goods. It also provides for duties of up to 100 per cent on goods from countries identified as major importers of Russian energy or facilitators of sanctions evasion. In addition, the bill includes sanctions against Russian President Vladimir Putin and senior figures in the Russian government.

India faces a new tariff threat under this framework. An amendment introduced by Democratic Congressman Steny Hoyer proposed explicitly naming ten nations—China, India, the UAE, Turkey, Singapore, Azerbaijan, Kazakhstan, Hungary, Kyrgyzstan, and Slovakia—as eligible for tariffs of up to 100 per cent under secondary provisions.

However, the amendment does not itself impose duties on India; tariffs would only apply if Trump chooses to exercise his powers.

If levied, the 100 per cent tariff on India would be in addition to the existing 10 per cent duty imposed by the US as a penalty for insufficient action against imports made using forced labour. The precise impact on Indian exports will only be clear once Washington announces the tariff rates.

India and the US have already experienced strained trade ties. Last year, Trump imposed an additional 25 per cent tariff on Indian imports of Russian crude, alongside a reciprocal 25 per cent tariff. These measures were removed in February 2026, while the reciprocal tariff was reduced to 18 per cent under a bilateral trade framework.

India’s Ministry of External Affairs responded firmly after the bill’s passage, stating that New Delhi remains committed to protecting its trade and economic interests. The ministry reiterated India’s determination to ensure energy security for its 1.4 billion citizens through diversified sourcing and evolving market dynamics.

It emphasised that the issue of India’s oil trade with Russia has been discussed extensively with US interlocutors, with New Delhi clearly articulating the potential implications for both bilateral relations and the wider international energy market.

While most Republican lawmakers supported the legislation, reports indicated that many privately urged party leaders to remove the new tariff powers. Concerns were raised that such measures could further increase consumer prices in the US, adding domestic economic pressure to the geopolitical agenda.

The signing of this sanctions law marks a significant escalation in Washington’s economic campaign against Russia, while simultaneously placing India and other nations at risk of steep tariff penalties.

The coming months will determine whether Trump exercises his discretionary powers and how India navigates the challenge of balancing energy security with trade stability.

Agencies