Trump signs Russia-Iran sanctions law, opens door to 100% tariffs on India

US President Donald Trump has signed into law a measure that gives his administration the power to impose tariffs of up to 100% on countries buying Russian oil and gas, potentially exposing major buyers such as India and China to higher duties on their exports to the US.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed on Friday, also expands sanctions on Russia's energy and defence sectors and targets its so-called “shadow fleet” and other entities involved in sanctions evasion. The law comes into effect within 30 days.

India, China among potential targets

Under the new law, Trump is required to impose duties of up to 100% on goods imported from the five biggest buyers of Russian crude oil or natural gas, based on volumes in the 12 months before the legislation was enacted. It also covers countries that knowingly make new purchases of Russian oil or gas after the law takes effect, as well as the top five countries helping Moscow evade sanctions.


India and China are among the biggest buyers of Russian oil, putting them at the centre of the potential tariff risk. However, the legislation does not name the countries that will ultimately be targeted, leaving the Trump administration to determine which nations qualify and what tariff rates they face.

A Reuters analysis, citing trade experts, said the lack of clearly specified criteria gives the US administration considerable discretion in determining the countries that fall within the top-five lists. Countries that could potentially be affected include India, China, Brazil, Japan and some European Union nations, depending on how the provisions are interpreted.

For India, the measure adds another layer of uncertainty to its trade relationship with the US. India has defended its purchases of Russian energy on the grounds of securing affordable supplies, while New Delhi has warned Washington that new tariffs could affect bilateral ties.

The law provides an exemption from gas-related duties for countries whose Russian gas imports accounted for less than 15% of Russia's total exports during the relevant period, provided they have taken “significant steps” to reduce those imports.

Wider economic uncertainty

The legislation could have implications beyond Russia's direct trading partners. Reuters reported that countries such as Brazil, Japan and members of the European Union could potentially come under scrutiny depending on how the administration interprets the law and determines the relevant top-five lists.

Critics have also raised concerns about the lack of clarity around the criteria for identifying target countries. Laura Brank, a lawyer at Bryan Cave Leighton Paisner, told Reuters that the president's discretionary authority could be abused. Others, including the conservative Foundation for Defense of Democracies, argue that the law sets out sufficient criteria and safeguards.

The measure comes as Trump prepares to meet Chinese President Xi Jinping next week. Reuters reported that US officials pushed for its swift passage after Trump agreed in July to move ahead with the legislation, giving Washington an additional source of leverage in talks with Beijing.

The law also gives the US a new statutory basis for imposing the tariffs, potentially making legal challenges more difficult than those against some of Trump's earlier tariff measures.

(With inputs from Agencies)