US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, giving his administration new powers to impose sanctions and tariffs on countries that continue buying Russian crude oil or natural gas under conditions set out in the legislation.
He signed it on Friday (September 18), the White House said. The law strengthens statutory sanctions against Russia and extends the Iran Sanctions Act for another five years.
The legislation gives the president authority to impose tariffs of up to 100 per cent on the five largest importers of Russian crude oil or natural gas, as well as countries that meet specified criteria involving purchases of Russian energy, efforts to help Russia evade sanctions, financial institutions, defence-related networks, or the “shadow fleet” of vessels used to transport Russian energy while avoiding Western restrictions.
India is among the world’s major buyers of Russian crude, along with China, making the provision on Russian oil purchases especially relevant to New Delhi. The new law gives Washington a legal route to impose tariffs on imports from countries that meet its criteria. Reuters reported that India could face these tariff powers because of its continued purchases of Russian oil.
100% tariff power isn’t automatic tariff
The law does not automatically impose a 100 per cent tariff on India, China or any other specific country. The decision to use the authority rests with the US president, subject to the conditions set out in the legislation.
The measure also gives the president waiver authority in specified circumstances. A waiver can be issued when the administration certifies to Congress that it is in the national interest.
Some US lawmakers have questioned the economic impact of giving the White House such extensive authority to impose tariffs.
What the law targets in Russia
The legislation goes beyond Russian oil purchases. It expands sanctions against Russian officials and financial institutions and targets networks involved in Russia’s defence sector.
The measure extends the Iran Sanctions Act for five years, keeping the existing US sanctions regime against Tehran in place.
It was introduced by the late Republican Senator Lindsey Graham and was named after him. It passed the Senate by 86-11 in August before clearing the House of Representatives by 262-159 on September 16. Reuters reported that the House vote sent the bill to Trump for his signature.
The House vote also showed bipartisan support for the measure, with 58 Democrats joining Republicans in backing it, according to Reuters.
Why India is watching the new law
India has continued importing large volumes of Russian crude since the Ukraine war disrupted traditional energy markets. New Delhi has defended its purchases on energy-security grounds and has maintained that it sources oil from multiple suppliers.
India had warned Washington that the proposed tariff powers could affect bilateral ties and energy security. Reuters reported on September 17 that Indian officials had discussed the legislation and its possible impact on trade and energy markets with their US counterparts. Indian refiners have also urged the government to seek exemptions or quotas.
The new law comes while India and the United States are also dealing with broader trade issues. According to Reuters, the tariff provision adds another complication to negotiations between the two countries.
China faces a similar exposure because it is also one of the largest buyers of Russian energy. The legislation therefore gives the Trump administration a tool that can affect trade with two of Russia’s major energy customers.
Ukraine welcomes the measure
Supporters of the legislation have said the sanctions are intended to reduce the money available to Russia during its war in Ukraine and increase economic pressure on Moscow.
Ukrainian President Volodymyr Zelenskyy welcomed the legislation and described sanctions as an important tool for putting pressure on Russia to move towards peace. Reuters reported that Zelenskyy had strongly backed the bill before its passage through Congress.
The signing now moves the issue from legislation to implementation. The immediate effect on India, China or other Russian energy buyers will depend on whether and how the Trump administration uses the new authority provided by Congress.
