US President Donald Trump has signed into law a sweeping Russia sanctions package that gives his administration the authority to impose tariffs of up to 100% on goods from major buyers of Russian oil and gas, potentially putting India and China under pressure.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 expands sanctions on Russia’s energy and financial sectors while targeting countries that continue significant purchases of Russian energy.
However, the law does not automatically impose a 100% tariff on India or China. Instead, it creates a legal mechanism allowing the Trump administration to determine which countries qualify for the measures, what tariff rates should apply and which products could be covered.
The legislation also provides scope for waivers in certain circumstances.
India Faces Potential Trade Pressure
India is particularly exposed because it has become one of the largest buyers of Russian crude. Data cited by S&P Global showed India importing about 1.6 million barrels per day of Russian crude in August, ahead of China at around 1.1 million barrels per day.
New Delhi has defended its purchases by stressing the importance of energy security and diversified sourcing. India’s External Affairs Ministry has maintained that the country must protect the energy needs of its population and make purchasing decisions according to market conditions.
China Also in Washington’s Crosshairs
China, another major Russian energy buyer, could also face higher US tariffs under the new framework. Beijing has opposed US pressure over its trade with Russia, adding another point of tension between the two economic powers.
The legislation is designed to increase pressure on Moscow by targeting the revenue generated from its energy exports. It also includes measures against Russian banks, officials, defence networks and the so-called shadow fleet used to transport energy.
What Happens Next?
The immediate impact will depend on how the Trump administration implements the new powers. The tariff rate, affected products and countries targeted remain key unanswered questions. For India and China, the law therefore represents a significant new trade risk, rather than an immediate 100% tariff.