The US Senate on Friday approved a bill that could allow President Donald Trump to impose tariffs of up to 100% on goods from countries such as India and China that continue to buy Russian oil and gas and other exports, arguing that such trade helps sustain Moscow’s economy and fund its war in Ukraine.Here are 10 things to know about the legislation and what it could mean for India.What is the billThe Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by an 86-11 vote. Named in honour of the late Republican Senator Lindsey Graham, one of the legislation’s principal architects, the bill authorises the US president to impose punitive tariffs and sanctions on countries that continue importing significant volumes of Russian oil and gas.The bill seeks to increase economic pressure on Russia and Iran while targeting countries that continue to conduct significant energy trade with Moscow.It also proposes sanctions against Russian officials, financial institutions, energy projects and other entities linked to the country’s war effort.Why could India soon face 100% tariffs?The legislation gives the US president the authority to impose tariffs of up to 100% on goods imported from countries that are among the top five buyers of Russian oil or natural gas.India is one of the world’s biggest buyers of Russian crude, alongside China.The measure is designed to make countries choose between continuing to buy discounted Russian energy and maintaining access to the US market.Darline Graham, the late senator’s sister who was appointed to his seat, said the legislation would force countries supporting Russia’s economy to make a choice.“This bill forces those primary countries keeping Russia’s economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy,” she said.Why is India in the spotlightIndia has sharply increased its purchases of Russian crude since the Russia-Ukraine war began in 2022.Western sanctions and the restructuring of global energy markets made Russian oil available to countries such as India at discounted prices. Indian refiners have used those supplies to secure cheaper crude and maintain energy security.India has repeatedly defended its purchases, maintaining that its energy decisions are guided by national interest and the need to provide affordable and reliable supplies.The proposed US legislation puts that policy under renewed pressure by linking access to the American market with purchases of Russian energy.India is already facing US tariff pressureThe proposed legislation comes on top of existing tariff tensions between Washington and New Delhi.The US had already imposed an additional 25% tariff on Indian goods over India’s purchases of Russian oil, taking the total tariff burden on some Indian exports to 50%.The new legislation therefore raises the possibility of significantly greater pressure if Washington chooses to use the proposed powers.However, the eventual impact will depend on how the Trump administration interprets and applies the legislation.What would happen if the US imposed a 100% tariff?A 100% tariff would significantly increase the cost of Indian goods entering the US market. The impact could be felt across sectors that depend heavily on exports to America, including engineering goods, pharmaceuticals, chemicals, textiles and auto components.US importers could face higher costs, while Indian exporters could lose competitiveness if American buyers shift to suppliers from other countries.The threat could also put additional pressure on Indian companies to diversify their export markets and on the government to negotiate with Washington.Why is Trump getting this power?The bill is intended to give the US president a powerful economic tool to pressure countries that continue buying Russian energy.Supporters argue that countries purchasing Russian oil and gas help provide Moscow with revenue that supports its military campaign in Ukraine.Richard Blumenthal said the legislation would send a strong warning to countries supporting Russia.“These sledgehammer sanctions and tariffs will stop all who are complicit in this murderous, criminal war of aggression against brave free people,” Blumenthal said.The legislation also targets Russian leaders, including President Vladimir Putin, as well as oligarchs, financial institutions and companies connected to Russia’s defence and energy sectors.Will India have any protection under the bill?The legislation gives the US administration some room to provide exemptions or waivers.For example, the bill provides an exemption for countries that import less than 15% of Russia’s total natural gas exports and are taking steps to reduce those imports.The president would also have waiver authority if the administration certifies that an exemption or waiver is in the US national interest.That means India’s position could ultimately depend not only on its Russian oil purchases but also on negotiations between Washington and New Delhi.White House National Economic Council Director Kevin Hassett has already indicated that the impact of the proposed sanctions on India will be a matter for negotiators.Asked whether the new sanctions legislation could affect US-India trade talks, Hassett said the issue was “up to the negotiators.”Why did the Senate pass the bill now?The legislation gained momentum following the death of Senator Lindsey Graham, who had worked for more than a year with Blumenthal and the White House on the sanctions package.Ukrainian President Volodymyr Zelenskyy also met US senators during his visit to Washington and watched from the Senate gallery as lawmakers moved ahead with the legislation.The bill is being presented by its supporters as a way to increase pressure on Putin and push Russia towards negotiations.Senator Blumenthal said Graham would be “proud of what we’ve done”.The package also extends the Iran Sanctions Act of 1996 until 2031 and includes measures targeting Iran’s energy sector.What happens next The legislation now moves to the US House of Representatives, which is expected to consider it when lawmakers return later this month. The House must approve the bill before it can be sent to Trump for his signature. That means there is still a significant legislative and diplomatic process ahead before any new tariff takes effect.
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