Trump Signs Russia-Iran Sanctions Act, Opening Path to 100% Tariffs on India and China

US President Donald Trump has signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, legislation that authorises tariffs of up to 100 per cent on countries purchasing Russian oil and natural gas — a measure that could directly affect India and China, the largest buyers of Moscow's energy exports.

The White House said the law "authorizes and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran." The signing came days after the House of Representatives passed the bill, following Senate approval by 86-11 and a House vote of 262-159, both with substantial bipartisan support.

What the law does

The Act directs the President to impose duties of up to 100 per cent on goods from the top five purchasers of Russian crude oil or natural gas by volume over the 12 months preceding enactment. It also sanctions Russian officials, banks and a "shadow fleet" of tankers used to keep Russian energy moving, and extends existing sanctions on Iran by five years.

A country can escape the gas-related tariffs if its imports of Russian gas accounted for less than 15 per cent of Russia's total natural gas exports during the applicable period and it has taken significant steps to reduce those imports. The law takes effect within 30 days of signing and grants the President broad discretion over which countries face tariffs, the rates applied, and whether sanctions provisions are waived.

The measure is intended to economically pressure Moscow by cutting off resources supporting its war in Ukraine, now in its fifth year, and to push countries to reassess their ties with Russia.

A legacy bill

The legislation was a final legacy item for the late Sen. Lindsey Graham, R-S.C., who worked on it for more than a year and had just returned from Ukraine when he died unexpectedly in July. His sister, Sen. Darline Graham, who was appointed to complete his term, said: "I wish Lindsey were here to celebrate this historic day. I know he would be so proud." Sen. Richard Blumenthal, D-Conn., a co-drafter, said Graham would be "jubilant" and "already thinking about the next one."

Graham's path to Trump's signature involved prolonged negotiations, with the White House seeking assurances that the President would retain sufficient flexibility on sanctions. Trump eventually backed the bill after it incorporated his push for a five-year extension of Iran sanctions.

Concerns and implications

Despite broad support, some Democratic lawmakers warned that the expanded tariff authority could be used to impose fresh levies on the European Union and elsewhere. House Minority Leader Hakeem Jeffries, D-N.Y., said: "Why in the world would this Congress or the People's House give this president unfettered authority to visit more tariffs on the world that will have an adverse economic impact on the American people?"

For India, the law adds pressure to reassess energy imports, though experts suggest New Delhi should prioritise its trade interests and negotiate firmly with Washington. The sanctions could strain US-India relations, as India has signalled its intent to protect its trade interests, potentially complicating ongoing trade negotiations.