Russia Sanctions Bill Passes US House, India Faces Potential 100% Tariff Threat

The Russia sanctions bill has cleared the US House of Representatives, giving President Donald Trump the authority to impose tariffs of up to 100% on major buyers of Russian energy. India could be affected because it has remained a major importer of Russian crude oil since the Ukraine war began.

The Act was approved by the House by a vote of 262-159. The measure now goes to Trump, who is anticipated to sign it into law.

Russia sanctions bill targets Russian energy trade

The law focuses significantly on Russia’s energy industry, financial institutions, and the oil tankers known as the “shadow fleet.” These boats are suspected of assisting in the transportation of Russian oil in order to escape Western sanctions.

Russia’s oil exports remain a significant source of cash for Moscow. The law aims to increase pressure on the financial networks and ships engaged in the country’s oil trade.

The legislation is technically known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, after the late South Carolina senator who advocated for harsher sanctions against Russia.

One of the most crucial sections gives the US president unprecedented authority to target nations who continue to purchase Russian oil and natural gas. Trump might levy secondary tariffs of up to 100% on Russia’s five major imports of crude oil and natural gas.

India could face higher US tariffs

India has emerged as a key customer of Russian petroleum since Western sanctions crippled Russia’s conventional energy markets after the start of the Ukraine conflict. Indian refiners expanded their purchases of cheap Russian oil, making it a significant portion of India’s total crude import mix.

The increased tariff power may consequently have an impact on Indian exports to the United States. If the Trump administration applies the clause to nations that continue to purchase Russian energy, Indian products entering the US market may face higher tariffs.

China, another big customer of Russian oil, might also be affected by the provision.

However, the Act makes limited exceptions for nations taking measures to cut their imports of Russian energy. The impact on India will be determined by how the Trump administration exploits its new powers after the measure is signed into law.

Democrats question broad presidential powers

Some Democrats rejected the bill, despite their support for further economic pressure on Russia. Their primary worries centred on the president’s broad ability to levy secondary tariffs.

Critics have warned that the tariff powers might cause business uncertainty and harm ties with important US trade partners. Nonetheless, the bill garnered enough support from the House to pass.

Ukrainian President Volodymyr Zelenskyy has also urged US senators to support stronger sanctions against Moscow. He claimed that increased economic pressure may persuade Russia to negotiate.

The law also extends current US sanctions on Iran for another five years. As politicians attempted to get support for the bill, the Iran provisions were included into a larger package.

The House vote has been completed, leaving the package to Trump. He is anticipated to sign the measure into law, following which the government will determine how and when to use its new tariff powers.