Washington/New Delhi: The US House of Representatives has passed a sweeping Russia sanctions bill that could give President Donald Trump the authority to impose tariffs of up to 100% on countries purchasing Russian oil and natural gas, potentially putting India and China at the centre of a new trade dispute with Washington.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was approved by the House in a 262-159 vote on September 16. The legislation had already cleared the US Senate and will now go to President Trump for his signature.
The legislation is designed to increase economic pressure on Russia by targeting its energy revenues, financial institutions, officials and the network of vessels described as Russia’s “shadow fleet”. At the same time, it creates a mechanism for imposing steep tariffs on countries that continue to purchase Russian energy.
India Could Face New US Tariff Pressure
India is among the world’s major buyers of Russian crude oil and could therefore fall within the scope of the legislation.
The bill authorises tariffs of up to 100% on goods imported into the United States from major purchasers of Russian oil or natural gas, as well as countries accused of helping Russia circumvent existing sanctions. India and China are among the countries most likely to be affected because of their substantial purchases of Russian crude.
However, the House vote does not mean that a 100% tariff on Indian goods begins immediately.
The legislation gives Trump additional authority. Whether and how that authority is used will depend on subsequent action by the US administration.
Why Russian Oil Is at the Centre of the Dispute
The legislation is part of Washington’s broader effort to reduce the flow of revenue that Russia receives from energy exports.
Russia’s oil and gas industry remains an important source of government revenue, and countries continuing to purchase Russian energy have become a major focus of US sanctions policy.
India has continued purchasing Russian crude because of its importance to the country’s overall energy supply and refining system. Russian oil has also become an important component of India’s crude import basket since Western sanctions and the restructuring of global energy trade following Russia’s invasion of Ukraine.
The proposed tariff mechanism seeks to increase the economic cost for countries that continue these purchases.
Bill Wins Bipartisan Support in House
Despite disagreement over the extent of presidential tariff powers, the legislation received support from lawmakers across party lines.
The House vote was 262 in favour and 159 against, with 203 Republicans, 58 Democrats and one Independent voting for the measure. Seven Republicans and 152 Democrats voted against it.
The Senate had previously approved the legislation by an 86-11 vote, giving the bill strong congressional support before it reached the House.
The legislation was originally introduced by the late Senator Lindsey Graham and has since been named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. Graham died in July 2026, after spending more than a year building support for the measure.
What the Bill Targets
The legislation goes beyond tariffs.
It includes measures targeting:
- Russian energy revenues
- Russian officials and financial institutions
- Russia’s energy sector
- Vessels involved in sanctions evasion
- Iran-related sanctions
- Countries continuing significant purchases of Russian energy
The objective is to increase economic pressure on Moscow while also discouraging other countries from maintaining large-scale energy trade with Russia.
What a 100% Tariff Could Mean for India
If the administration eventually applies the maximum tariff to Indian goods, the consequences could extend across several sectors of India-US trade.
A tariff of 100% effectively doubles the customs burden on affected imports before other costs are considered. Depending on the products targeted and how American importers respond, such duties could affect exporters, supply chains and the competitiveness of Indian products in the US market.
The potential impact would depend heavily on which products are covered, when the tariffs are introduced, and whether exemptions or other policy adjustments are made.
The measure therefore creates a significant risk for India-US trade, but the precise economic impact cannot be determined until the administration announces how it intends to use the new authority.
India’s Energy Security in Focus
The issue is particularly sensitive for India because crude oil imports are central to the country’s energy requirements.
India imports most of its crude oil needs, making the price and availability of international supplies important factors for inflation, transportation costs, manufacturing and the wider economy.
Russian crude became an increasingly important source for Indian refiners following changes in global oil flows after 2022.
A major reduction in Russian oil purchases could therefore require Indian refiners to source more crude from alternative suppliers, potentially changing procurement costs and logistics.
The Indian government has consistently emphasised the importance of maintaining energy security and affordable energy supplies while navigating international geopolitical pressures. Recent government statements have again highlighted energy security following the US House vote.
China Also Faces Potential Tariff Exposure
India is not the only major economy that could be affected.
China is another major purchaser of Russian crude and is also within the broader scope of the legislation’s tariff provisions.
The potential measures therefore have implications beyond US-India relations and could affect global energy trade involving some of the world’s largest economies.
If Washington uses the tariff authority extensively, global oil flows could shift as major buyers reassess their dependence on Russian supplies.
US-India Trade Relations Enter a New Phase
The legislation arrives amid broader negotiations and tensions over trade between India and the United States.
A new tariff mechanism linked specifically to Russian energy purchases adds another layer to the relationship, connecting trade policy, energy security and geopolitical strategy.
For Indian exporters, the immediate issue is whether the Trump administration chooses to use the authority granted by Congress and, if so, which countries and products would be covered.
For New Delhi, the challenge will be balancing its energy requirements with the potential economic consequences of continued Russian oil purchases.
What Happens Next?
The bill now moves to President Trump’s desk after clearing both chambers of Congress.
The next major step will be determining whether Trump signs the legislation and how his administration interprets and implements the tariff authority.
For India, the distinction between authorisation and actual tariff implementation will be critical.
At present, the House vote creates the legal pathway for tariffs of up to 100%; it does not automatically impose such a tariff on Indian imports.
The coming weeks could therefore be important for both India-US trade relations and India’s strategy for sourcing crude oil from Russia and other international suppliers.
The legislation also highlights how the Russia-Ukraine conflict continues to influence global trade well beyond Europe, with energy purchases increasingly becoming a factor in the economic relationships between major powers.
