Russia Sanctions Bill Clears US House, India and China Face 100 percent Tariff Threat

Washington: The US House of Representatives has passed a major Russia sanctions bill that could give President Donald Trump the authority to impose tariffs of up to 100% on countries that continue to buy Russian oil and gas, putting major energy importers such as India and China under fresh pressure. The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, was approved by the House in a 262-159 vote on Wednesday. The bill had earlier received strong support in the US Senate, where it passed by an 86-11 vote. It will now be sent to President Trump, who must decide whether to sign it into law.

The legislation is aimed at increasing economic pressure on Moscow over the Russia-Ukraine war. Among its provisions is a mechanism that would allow the US president to impose tariffs of as much as 100% on countries that continue significant purchases of Russian energy. India and China have come into focus because both countries are major buyers of Russian crude. Since the war in Ukraine disrupted global energy markets, Indian refiners have substantially increased their purchases of Russian oil, attracted in part by competitive pricing. China has similarly maintained extensive energy trade with Russia.

The House approval, however, does not mean that the United States has immediately imposed a 100% tariff on Indian or Chinese products. Instead, the bill would provide the Trump administration with the authority to introduce such tariffs if it chooses to use the powers granted under the legislation. The development could create uncertainty for exporters with significant exposure to the US market. If Washington eventually applies the maximum tariff, Indian products entering the American market could become considerably more expensive. The eventual economic impact would depend on how the administration implements the legislation, which products are covered and whether exemptions or other arrangements are introduced.

The potential tariff measure is part of a broader effort by Washington to put pressure on countries that continue doing business with Russia. The legislation also expands sanctions targeting Russian individuals, financial institutions and parts of the countrys energy sector. It contains provisions aimed at vessels associated with Russias so-called shadow fleet, which Western governments have accused of helping Moscow transport oil while avoiding sanctions. The bill also includes measures concerning Iran, making it a broader sanctions package rather than legislation focused solely on Russia.

Indias continued purchases of Russian oil have previously been a source of disagreement between New Delhi and Washington. Indian officials have repeatedly maintained that the countrys energy procurement decisions are driven by national interests, energy security and the need to secure affordable supplies for its large domestic market. The latest development could therefore add another complicated issue to India-US trade relations. The two countries have expanded cooperation in areas such as defence, technology and strategic affairs, while disagreements over tariffs and Indias Russian energy imports have remained sensitive issues.

The House vote also reflected divisions within the US Congress over the scope of presidential tariff powers. While the legislation received support from lawmakers from both parties, a significant number of representatives opposed it, including members concerned about giving the president broad authority to impose tariffs as part of foreign policy. With the bill now heading to the White House, attention will turn to Trumps next move. If he signs the legislation, the administration would gain the authority to use the tariff mechanism, but any decision to actually impose duties on India, China or another country would come later. The immediate consequence is therefore the emergence of a new potential trade risk rather than an automatic 100% tariff. The situation will depend largely on how Washington interprets and exercises the new powers and whether New Delhi and the US engage in further discussions over Russian oil purchases and bilateral trade.

The legislation nevertheless underlines how Russias energy trade has become closely linked with wider global economic and diplomatic relations. For countries such as India and China, decisions over energy supplies are increasingly being viewed not only through the lens of fuel costs and energy security but also through the potential impact of sanctions and trade policy.

Disclaimer: This image is taken from TOI.