GUWAHATI: US President Donald Trump on Friday, September 18, signed into law a sweeping sanctions package targeting Russia and Iran, giving his administration expanded powers to penalise countries that continue buying Russian oil and gas, including India.
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The legislation, named the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” authorises sanctions against Russian officials, banks and other entities while targeting Russia’s energy trade and its so-called shadow fleet. It also extends existing sanctions on Iran.
The move has raised fresh concerns for India, as the law gives Trump the power to impose tariffs of up to 100 per cent on countries that continue significant purchases of Russian energy.
The Republican-led US House of Representatives had passed the bill by a vote of 262-159, two days before Trump signed it into law.
An amendment introduced by Democratic Congressman Steny Hoyer had proposed explicitly naming 10 countries- China, India, the UAE, Turkiye, Singapore, Azerbaijan, Kazakhstan, Hungary, Kyrgyzstan and Slovakia- as eligible for tariffs of up to 100 per cent under the bill’s secondary tariff provisions.
However, the amendment does not automatically impose a 100 per cent tariff on India. Any such tariff would depend on whether Trump chooses to exercise the authority granted under the legislation.
If imposed, a new 100 per cent tariff would come on top of the 10 per cent tariff currently imposed by the US on Indian imports as a penalty linked to concerns over goods made using forced labour.
The exact impact on Indian exports will depend on the tariff rate, if any, eventually announced by the Trump administration.
The legislation targets Russia’s energy and defence sectors as well as its “shadow fleet” of tankers, which US authorities accuse of helping Moscow evade sanctions. It also gives Trump the authority to waive tariffs or sanctions on national security grounds.
The bill’s passage follows Trump’s decision in July to support moving the legislation forward after more than a year of delays. US officials had backed the measure as a way to give the administration greater leverage in negotiations, including ahead of Trump’s planned meeting with Chinese President Xi Jinping.
White House legislative director James Braid said the legislation marks the first time in nearly 40 years that Congress has granted new tariff authorities to the executive branch.