US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law, giving his administration new powers to impose tariffs of up to 100 per cent on imports from major buyers of Russian oil and gas. India and China are among the countries that could be affected under the legislation.
India and China could face tariffs
The law does not directly name India or China. Instead, it requires the US Trade Representative, in consultation with the Secretaries of State and Energy, to identify the five largest purchasers of Russian crude oil and natural gas based on volumes over the previous 12 months. That list is to be reviewed every 180 days.
Trump has the authority to decide whether tariffs are imposed and, if so, set the rate up to the 100 per cent ceiling. The legislation therefore gives him the power to act against major Russian energy buyers without making such tariffs mandatory. India and China are currently among the biggest purchasers of Russian crude.
Bill targets Russia’s energy revenues
The legislation is aimed at putting further pressure on Russia’s energy trade and reducing the revenue available to Moscow. It also targets Russia’s so-called shadow fleet and foreign networks involved in supporting its energy exports or helping evade sanctions.
The measure also provides for tariffs of up to 500 per cent on goods imported directly from Russia. The President can waive tariffs for a country by certifying to Congress that doing so is in the national interest. Permanent removal requires the country to stop buying Russian energy and provide assurances that such purchases will not resume.
Pressure on Russian energy buyers
The legislation was introduced in the Senate in April 2025 by Lindsey Graham and Richard Blumenthal and went through months of negotiations before clearing Congress this year. The House passed it on September 16, two days before Trump signed it.
Blumenthal has repeatedly singled out India and China over their Russian energy purchases. After the House vote, he said, “To China and India: You better clean up your act. Buy your oil and gas somewhere else,”
The law also extends existing US sanctions on Iran and gives Washington additional tools to target Russia-linked entities.