100% Tariff On India? US Senate Passes Tough Russia Sanctions Bill

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 cleared the Senate by an 86-11 vote. The bill gives President Donald Trump the power to impose tariffs of up to 100 per cent on goods from countries among the world's top five purchasers of Russian oil or natural gas. India and China are among the countries in the crosshairs, along with Azerbaijan, Hungary and Slovakia.

But India has not been hit with a 100 per cent tariff yet. The Senate vote only advances the legislation. It must still be approved by the US House of Representatives and signed by Trump before becoming law. The House is scheduled to return from its summer recess on August 31.

The measure is also less severe than an earlier version. The original proposal had threatened tariffs as high as 500 per cent against countries buying Russian energy. After negotiations, the Senate-approved version lowered the maximum possible tariff to 100 per cent.

The tariff would not be automatic even if the bill becomes law. Trump would have to decide whether to use the new authority. The legislation also provides an exception for countries that import less than 15 per cent of their natural gas from Russia and are taking steps to reduce their dependence.

Trump would also have the power to waive the sanctions if he certifies to Congress that doing so is in the US national interest.

The bill goes far beyond tariffs. It seeks sanctions against Russian President Vladimir Putin, senior officials, oligarchs, financial institutions and energy projects. It also targets Russia's so-called shadow fleet and reflagged tankers accused of helping Moscow move oil while avoiding Western restrictions.

The legislation also extends the Iran Sanctions Act of 1996 until 2031, allowing penalties against companies that invest in Iran's energy sector.

The bill was championed by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. Graham, a strong supporter of Ukraine, died on July 11. His sister, Darline Graham, was appointed to his Senate seat after his death.

The legislation has drawn criticism from Democrats who fear that it gives Trump sweeping new tariff powers. Representatives Gregory Meeks and Don Beyer said the bill could give the president too much freedom to impose tariffs and could worsen trade tensions while leaving American consumers to bear higher costs.

For India, the vote adds another layer of pressure to an already sensitive trade relationship with Washington. India remains a major buyer of Russian crude, with discounted Russian oil playing an important role in its energy supplies.

The possible tariff could also make Indian goods more expensive in the US market if Trump eventually uses the authority. That could affect Indian exporters and add pressure to the broader India-US trade relationship. Economic Times coverage has highlighted the potential impact on Indian exports if the measure ultimately takes effect.

The development also comes against the backdrop of Washington's wider effort to pressure countries that continue trading with Moscow. The US argues that purchases of Russian energy help sustain Russia's economy and indirectly support its war in Ukraine.

For New Delhi, however, the immediate situation is different from what the headline might suggest. There is no new 100 per cent US tariff on Indian goods today. The Senate has approved a bill that could give Trump that power.

The next step is the US House. If lawmakers approve the measure and Trump signs it, the president would then have to decide whether to use the tariff authority against countries buying Russian energy.