Trump Signs Russia Sanctions Bill Allowing 100% Tariffs on Major Energy Buyers, Targeting India and China

President Donald Trump on Friday signed the Lindsey O. Graham Sanctioning Russia and Iran Act, clearing the way for potential tariffs of up to 100% on imports from the five largest buyers of Russian crude oil and natural gas. The legislation, which passed Congress with strong bipartisan backing, also expands statutory sanctions on Russia’s financial system, energy entities, and its so-called “shadow fleet” of tankers used to evade existing restrictions.

The tariff provision requires the president to impose the levies within 30 days on goods from countries that rank among the top five importers of Russian crude oil or gas, or that knowingly make new purchases of Russian energy after the law takes effect. The bill does not name specific nations, but India and China are widely recognized as the largest buyers of Russian crude. The legislation leaves the Trump administration significant discretion in determining how the top-five lists will be calculated and the exact tariff rate, which can be set below the 100% ceiling.

According to a report by indiatimes citing Reuters, analysts said Trump may be reluctant to impose measures that could push consumer prices and energy costs higher ahead of the November midterm elections.

Background of the Legislation

The measure was initially proposed by the late Republican Senator Lindsey Graham and Democrat Richard Blumenthal in April 2025 with a threat of 500% tariffs on countries buying Russian energy. After more than a year of negotiations with the White House, the figure was cut to 100%, according to a report by rt.com. The bill also grants Trump broad waiver powers, allowing him to suspend sanctions based on national interests and giving his administration wide leeway in setting tariff rates — one of the key points of debate between the White House and lawmakers, some of whom feared the legislation gave Trump too much power.

The bill passed the House by a vote of 262 to 159, with 58 Democrats in favor and 152 against, joined by seven Republican dissidents. The Senate approved the measure 86-11 last month.

Reactions from Ukraine, Russia

Ukrainian President Volodymyr Zelenskyy thanked Trump for signing what he called “critically important legislation,” extending his gratitude to the senators and House members who supported it. In a Telegram post, Zelenskyy recalled that Graham, who died suddenly from a torn aorta about two months before the bill’s passage, “would always talk about how important it was not to ease pressure on Russia, to strengthen sanctions and seek a path to peace.”

“In particular, in those capitals that choose to buy Russian oil, provide financial services to Russia, and allow Russian companies linked to Putin and the war to engage in normal business relations in other countries,” Zelenskyy wrote. “The best way to honor Lindsey’s memory will be to implement the provisions of this law fully and swiftly.”

Moscow reacted sharply. Kremlin spokesman Dmitry Peskov told reporters that “the introduction of any additional sanctions by the United States will definitely complicate efforts to find a peaceful settlement in Ukraine.” The Russian Embassy in Washington warned that blocking Russian energy trade while Middle Eastern supplies are disrupted could drive up prices for US consumers, describing it as an “invitation to ever-higher prices at the pump.” Dmitry Medvedev, deputy chairman of Russia’s Security Council, called the legislation an example of “Russophobic outrages” and referred to Graham as a “dead terrorist,” as reported by abcnews.

Broader Sanctions and Waiver Authority

Beyond the tariff provision, the law targets Russian political officials and oligarchs, banks, defense contractors, and the shadow fleet of tankers used to evade existing oil price caps. It also includes a provision preventing a lapse in sanction authority that restricts funding for Iran’s energy and weapons sectors.

The Trump administration recently eased some sanctions on Russian oil, issuing temporary exemptions for oil already at sea during the Iran conflict, according to rt.com. The new legislation’s broad waiver powers mean Trump could choose to suspend the tariffs or sanctions if he deems it in the national interest, a clause that drew criticism from top House Democratic leaders who voted against the bill, arguing it “gives extraordinary power to Donald Trump,” as abcnews reported.

Impact on Global Trade

The signing sets the stage for potential trade friction with China and India, the world’s second- and fifth-largest economies, respectively. Both countries have continued to purchase large volumes of Russian crude oil despite Western sanctions, often at discounted prices. If the Trump administration imposes the full 100% tariff on goods from those nations, it could disrupt bilateral trade flows and raise costs for US importers. However, the discretionary nature of the provision means implementation remains uncertain, with analysts pointing to political constraints ahead of the midterm elections.