100% tariff threat looms over India as US senate passes Russia sanctions bill

The US Senate on Friday passed a sweeping Russia sanctions package that will allow President Donald Trump to impose 100% tariffs on the world's top five buyers of Russian oil and gas, a list that puts India and China among the countries directly affected.

The bipartisan bill passed 86-11 and caps a year-long campaign by the late Senator Lindsey Graham to reinforce US support for Ukraine and pressure President Vladimir Putin as the war, now longer than World War I, continues. The bill has since been renamed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.

What does the bill mean for India, China?


The bipartisan package that carries Graham's name allows the president to impose tariffs on the world's top five purchasers of Russian oil or natural gas, including China and India. It provides exceptions for countries that import less than 15% of their natural gas from Russia and are taking steps to reduce those imports.

Also read: US Senate passes sweeping Russia sanctions bill; new tariff threat for India, China ahead

China, India, Azerbaijan, Hungary and Slovakia are currently the top five importers of Russian oil and gas, making them the countries most directly exposed to the new tariff authority.

How did the bill come together?

The Senate vote comes after Ukrainian President Volodymyr Zelenskyy visited the Capitol hours after Graham's funeral, met senators from both parties and watched from the gallery as the Senate took its first procedural votes last week. Senator Richard Blumenthal, who worked with Graham on the bill, told the chamber that Zelenskyy was "watching from Ukraine" and Putin "watching from Moscow." He added that the US was telling Ukraine's people they are "not alone," and telling Putin he "will not conquer Ukraine."

Graham and Blumenthal had announced a deal with the White House on the legislation on July 10, after more than a year of negotiations. Graham, who had just returned from a trip to Ukraine, died suddenly the next day, likely of an aortic tear.

Senator Darline Graham, appointed to fill her brother's Senate seat, said he had been determined to end the war and that she was honoured to carry his work forward. "This legislation hits Putin where it hurts," she said. She added that the bill forces countries keeping Russia's economy afloat to choose between "doing business with America or buying cheap Russian energy."

The Senate's move is the most substantial shift yet, during Trump's second term, in Congress's approach to the war, after lawmakers had struggled to keep US funding and munitions flowing to Kyiv. Trump has given his backing to the package, adding pressure on the House to take it up and send it to his desk.

What else does the bill include?

The legislation also sanctions Putin, senior Russian political and military leaders, Russian financial institutions and energy projects, and expands existing sanctions to cover older, reflagged oil tankers Russia uses to get around them. A waiver clause lets the president exempt a country from sanctions if he certifies to Congress it is in the national interest.

The bill also extends the Iran Sanctions Act of 1996, which penalises companies investing in Iran's energy sector, until 2031.

What were the reactions on this Bill?

Zelenskyy told senators at last week's Capitol meeting that Ukraine is making gains but still needs more American support, and publicly thanked them for the package, saying it would send a "big signal" to Ukraine and its allies.

Republican Senator Todd Young of Indiana, who attended that meeting, called the legislation a moral signal to a country that is "weary and tired, though holding its own." New Hampshire's Jeanne Shaheen, the top Democrat on the Foreign Relations Committee, said moving the bill now, ahead of Russia's own elections, would pressure Putin to revisit peace talks, and warned that Russia escalates attacks whenever Washington backs off tough measures.

Democrats and some Republicans have been wary of giving Trump broad new tariff powers at a time of inflation concerns, and most of the votes against the final package came from progressive Democrats.

An amendment by Republican Rand Paul and Democrat Ron Wyden, which would have stripped Trump of the new tariff authority, was defeated. Wyden argued Americans are "walking an economic tightrope," while Paul said the powers would be too costly for taxpayers.

Also read: 100% tariff threat for India and others: US Senate advances Russia sanctions bill

Democrat Raphael Warnock, who had briefly held up the bill over the tariff clause, said he'd received a written commitment from US Trade Representative Jamieson Greer that tariffs would be lifted once a country stops buying Russian oil and gas or aiding sanctions evasion. Trump should not be allowed to overstep that power, he said, adding that Congress "will see him in court" if he does. Connecticut's Chris Murphy said he was weighing his concerns about the new powers against the boost the bill gives Ukraine, and chose to support it.

Democrat Congressmen Gregory Meeks and Don Beyer separately criticised the bill, arguing it would let Trump avoid holding Russia accountable while giving him fresh tariff powers to use in his broader trade wars, with Americans left to bear the cost.

What happens next?

The bill will now go to the House of Representatives, which reconvenes on August 31. The House had already passed a separate measure in June providing security and reconstruction aid to Ukraine and sanctioning parts of the Russian economy, a Democrat-led package that drew Republican support despite objections from GOP leaders who felt it could undermine ongoing negotiations.

With inputs from AP and PTI