US Tariff Threat Looms Over India’s Russian Oil Purchases

The US House of Representatives has passed the Sanctioning Russia, Iran Act of 2026, a legislation that would provide President Donald Trump with expanded authority to impose penalty tariffs on countries that continue purchasing Russian energy. The bill passed the House with a 262-159 vote after receiving Senate approval earlier.

Named after the late Senator Lindsey Graham, the legislation seeks to increase economic pressure on Russia and encourage an end to the war in Ukraine. It includes measures targeting Russian officials, financial institutions, energy projects and vessels involved in transporting Russian oil while attempting to evade sanctions. The bill also extends existing restrictions aimed at limiting funding for Iran’s energy and weapons sectors.

Under the proposed legislation, countries that make major purchases of Russian crude oil and natural gas could face penalty tariffs of up to 100%. China is currently the largest buyer of Russian oil, while India ranks among the leading purchasers. If the legislation becomes law and India continues buying Russian oil, Indian exports to the US could face additional tariffs under the new framework.