Russia Sanctions Bill: Trump Set to Sign Bill as India and China Face Tariff Risk

Russia sanctions bill is set to be signed by US President Donald Trump, giving his administration the power to impose tariffs of up to 100 per cent on countries that continue buying Russian oil and gas. India and China, two major buyers of Russian energy, could face the measures if Trump decides to use the powers provided under the legislation.

A White House official confirmed to ANI on Thursday that Trump intends to sign the law. On Wednesday, the US House of Representatives adopted the law by a vote of 262-159, after its passage in the Senate.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 does not impose a 100 percent tax on India or China. Instead, it provides Trump the ability to impose tariffs of up to that amount on nations who continue to buy Russian oil and gas.

Russia Sanctions Bill Gives Trump Tariff Powers

The measure aims to increase economic pressure on Russia. It includes sanctions aimed at Russia’s energy and defence industries, as well as financial institutions, officials, and vessels associated with what the US calls its shadow fleet.

However, signing the bill would not immediately result in a 100% duty on Indian imports. Any action against India would be determined by whether Trump decides to use his power and what conditions his administration imposes.

The problem arises at a crucial time in India-US commercial ties. New Delhi and Washington are still negotiating a bigger bilateral trade pact, while India’s imports of Russian oil have already caused friction.

India Defends Its Russian Oil Purchases

India has said that guaranteeing energy sources for its 1.4 billion population is still a priority. The Ministry of External Affairs said that New Delhi is monitoring developments relating to US law and would continue to purchase energy from various providers based on market circumstances.

The ministry also said that India has reviewed the legislation’s potential implications with top US authorities in recent months. New Delhi has expressed worry about the impact on bilateral ties and world energy markets, stating that it would take measures to preserve its trade and economic interests.

Vinay Mohan Kwatra, India’s Ambassador to the United States, likewise supported his country’s attitude. He regarded energy sourcing as a vital national obligation related to the country’s population and energy requirements.

According to statistics from the Global Trade Research Initiative, India imports more than 88 percent of its crude oil. Russian petroleum has been a significant element of India’s supplies since the Russia-Ukraine conflict altered global oil trading.

Indian refiners continue to buy Russian oil depending on price, availability, and market circumstances. A significant decline in Russian supply might require refiners to seek other sources, with the cost dependent on global oil prices, availability, and transportation costs.

According to Reuters, Indian refiners have also met with Washington to explore potential exemptions or quotas. They have cautioned that reducing Russian supply may increase prices while global oil markets remain under pressure.

Russia and China Respond to the US Move

Russia has condemned the law. Dmitry Peskov, Kremlin spokesperson, said Moscow was following the bill and claimed that new US penalties may complicate attempts to establish a peaceful solution in Ukraine.

China has also opposed to the US strategy. Guo Jiakun, Foreign Ministry spokeswoman, said that regular trade and economic cooperation between nations should not be hindered or imposed by a third party.

Beijing criticised what it dubbed the US’s “long-arm jurisdiction” and said that it rejects unilateral sanctions that without international legal justification or UN Security Council approval.

For India, the immediate concern is whether the Trump administration would use its new tariff powers. The measure allows for tariffs of up to 100%, but it does not compel the US president to apply the maximum amount on India.