US Senate Passes Landmark Bill Authorizing 100% Tariffs on India and Others Over Russian Oil Purchases

The US Senate has approved a bill authorizing tariffs of up to 100% on nations purchasing Russian energy, specifically naming India as one of five primary target economies. While the legislation provides the executive branch with waiver authority, it introduces a significant new lever for Washington in its ongoing trade negotiations with New Delhi.

RMN News Trade Desk
New Delhi | August 8, 2026

In a decisive 86-to-11 vote on Friday, the US Senate approved the Lindsey O Graham Sanctioning Russia and Iran Act 2026. This landmark legislation authorizes the United States to impose tariffs of up to 100% on countries that continue to purchase Russian oil, gas, and other exports.

The bill specifically identifies five target economies: India, China, Slovakia, Hungary, and Azerbaijan. Notably, the legislation spares US allies in Europe who make similar purchases. Sponsors of the bill stated that the ceiling was set at 100% to ensure the rate is high enough to effectively deter Indian and Chinese buying of Russian energy.

  High-Impact Deterrent: The US Senate’s new bill sets a 100% tariff ceiling specifically designed to deter India and China from purchasing Russian energy exports.

Mechanisms of Enforcement and Discretion

While the bill sets a headline ceiling of 100%, it grants the office of the US Trade Representative (USTR) the discretion to set the actual tariff rates. Additionally, the legislation includes a presidential waiver. This allows the executive branch to bypass the tariffs on certified national interest grounds, though such waivers must be reassessed every 180 days. This 180-day review cycle ensures the instrument remains reversible and provides a persistent “pressure point” in diplomatic relations.

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Implications for India-US Relations

For India, this legislative move comes at a critical juncture as New Delhi and Washington attempt to finalize a comprehensive trade deal. Indian negotiators have recently been pressing for competitive advantages over trade rivals like Indonesia and Bangladesh. However, this new bill adds to a growing list of US economic levers, joining the Section 301 forced-labour tariffs and an ongoing excess-capacity investigation.

  Trade Leverage: With a 180-day reassessment cycle, the new tariff bill provides Washington with a permanent lever in its delicate trade negotiations with New Delhi.

India has historically defended its energy purchases, citing national energy security. New Delhi has previously characterized such unilateral tariff moves as “unfair,” particularly when Russian exports are consumed by numerous other nations.

Next Steps

The bill now moves to the House of Representatives, where Republicans control the floor calendar. Passage in the House in an identical form is the final hurdle before the bill reaches President Donald Trump’s desk. The President has already signaled his support for the measure, and his administration reportedly helped shape the current text of the legislation.