Congress Grants Trump New Powers to Impose Tariffs, Affecting Global Trade

Congress Hands Trump Sweeping New Tariff Powers — What It Means for the World

On September 16, 2026, the U.S. House of Representatives passed the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026" by a vote of 262–159, sending it to President Donald Trump's desk. The Senate had already approved the bill 86–11 in early August. The White House has confirmed Trump intends to sign it into law, making it one of the most significant pieces of foreign-policy legislation of his second term.

While the bill is framed primarily as a sanctions package targeting Russia and Iran, its most consequential — and controversial — provision hands the president substantial new authority to impose tariffs, a power that under the U.S. Constitution belongs to Congress rather than the executive branch.

What the Bill Actually Does

The legislation, named for the late Senator Lindsey Graham of South Carolina, who championed it before his death in July 2026, combines two elements:

Sanctions - It imposes penalties on Russian President Vladimir Putin, senior officials, oligarchs, and Russian banks and financial institutions. It also targets the "shadow fleet" of tankers used to evade Western price caps on Russian oil, and extends sanctions authority tied to Iran's energy and weapons programs for five more years.

Tariff authority - To secure the White House's support, lawmakers built in a mechanism allowing the president to impose tariffs of up to 100% on the five largest purchasers of Russian crude oil and the five largest purchasers of Russian natural gas — a group that currently includes China, India, Hungary, Slovakia and Azerbaijan for oil, and China, Japan, France, Belgium and Hungary for gas. Some provisions allow tariffs on Russian-origin imports of up to 500%. Countries that source less than 15% of their natural gas from Russia and are demonstrably reducing that share are exempted. The U.S. Trade Representative, Jamieson Greer, would help determine the final tariff levels applied.

Why This Matters Constitutionally

Article I of the U.S. Constitution gives Congress, not the president, the power to regulate foreign commerce and levy tariffs. Over decades, Congress has delegated pieces of that authority to the executive branch through various statutes. Trump's first-term and second-term tariff actions have repeatedly tested the limits of that delegation — most notably when the Supreme Court ruled in February 2026 that the president could not use the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs, prompting the administration to pivot to a different statute, Section 122 of the Trade Act.

The new sanctions bill sidesteps that legal uncertainty by giving the president explicit, statutory tariff authority tied specifically to countries doing business with Russia's energy sector. Critics — including some Republicans who lobbied privately against the provision — warn this sets a precedent that could be used more broadly against U.S. trading partners, not just adversaries. Trade groups and free-market advocates, including the Cato Institute, have argued Congress is permanently ceding leverage it may struggle to reclaim.

Supporters counter that the authority is narrowly tailored: it applies only to countries buying significant volumes of Russian oil or gas, includes exemptions, and was the price of getting a reluctant White House to accept tougher sanctions on Moscow at all.

The Political Backdrop

The bill passed with an unusual coalition. Fifty-eight House Democrats joined most Republicans to support it, while seven Republicans broke ranks to vote no alongside the bulk of the Democratic caucus — a split that cut across party lines in both directions. Ukrainian President Volodymyr Zelensky had personally lobbied senators for its passage, and Ukrainian officials have welcomed it as a concrete signal of continued U.S. support nearly five years into Russia's invasion.

Some Democratic leaders opposed the bill specifically because of the tariff provisions, arguing that handing Trump broader trade authority — even in service of pressuring Russia — could ultimately be turned against U.S. allies and would raise consumer prices domestically ahead of the November midterm elections.

Global Implications

For China and India - As the two largest buyers of Russian crude oil, China and India are the most immediate and significant targets of the new authority. Tariffs of up to 100% on their exports to the U.S. would represent a major escalation in trade tensions, particularly with China, which is also entangled in separate, ongoing tariff disputes with Washington.

For Europe and Japan - Some U.S. allies and partners — including Hungary, Slovakia, Japan, France and Belgium — appear among the top purchasers of Russian oil or gas, meaning they too could face pressure or tariff exposure unless they qualify for exemptions by demonstrably reducing Russian energy imports.

For global energy markets - By financially penalizing countries that buy Russian oil and gas, the law aims to choke off a key revenue stream funding Russia's war effort. But it could also push affected countries to seek alternative suppliers rapidly, potentially disrupting global energy prices and supply chains.

For international trade norms - Beyond Russia and Iran specifically, the law adds to a broader pattern of the U.S. using tariffs as a tool of geopolitical leverage rather than purely economic policy — a shift that trading partners and multilateral institutions have been watching closely throughout Trump's second term.

What Happens Next

With the White House confirming Trump's intent to sign the bill, it is expected to become law imminently. Implementation will then fall to the U.S. Trade Representative's office and other executive agencies, which will need to determine exact tariff schedules, timelines, and how exemptions will be assessed. Affected countries — particularly China and India — are likely to respond diplomatically or through retaliatory trade measures of their own, and legal challenges questioning the scope of the delegated tariff authority are plausible given the recent Supreme Court scrutiny of similar executive actions.

For now, the bill marks a rare moment of bipartisan cooperation in an otherwise gridlocked Congress — achieved, in large part, by giving the president a tool that many of the lawmakers who voted for it privately worry he could use far beyond its original intent.