Senators in the United States have called for tariffs of up to 100 per cent on exports from nations that purchase Russian oil. The bill, a softened version of the Sanctioning Russia Act, will target countries such as China, Slovakia, Hungary, Azerbaijan, and India.
The sanctions bill was championed by the late South Carolina senator Lindsey Graham and introduced in April 2025. Earlier this year, amid trade tensions between the US and India, Graham announced that the bill had been greenlit by President Donald Trump.
In January 2026, the bill called for tariffs up to 500 per cent. However, the latest version of it calls for levies up to 100 per cent.
What is the new bill about?
Speaking at a press conference in Washington, Senator Richard Blumenthal stated that the new bill will bring tariffs on five major purchasers of Russian oil.
“Those five major purchasers right now of oil are China, India, Slovakia, Hungary, Azerbaijan,” said Blumenthal, adding that the bill will make an exception for countries purchasing Russian gas if their purchase is less than 15 per cent of Russia’s total gas imports.
The final rate of the tariff will be determined after deliberations from the United States Trade Representative.
“The decision about the exact rate will be determined by the United States Trade Representative. We’ve had extensive discussions with him. I think it will be set at an appropriate level to discourage China, India and other major purchasers of Russian oil and gas. Remember that there are reporting and certification requirements from the US Trade Representative to the Congress if the rate is lowered,” said Blumenthal, as reported by HT earlier.
How will it impact India?
India was first penalised by Washington over its purchase of Russian oil in August 2025. President Trump announced an additional 25 per cent tariff against India for “fueling Putin’s war”.
This took the total tariff against India to 50 per cent, the highest along with China and Brazil.
The new tariff also sparked tensions between the two allies, with trade negotiations coming to a halt.
However, with the breakout of the US-Iran war in February, the world, including India, saw itself in an energy crisis with the blockade of the Strait of Hormuz.
Amid this major disruption, the US announced a waiver on Russian oil, which allowed India to resume its purchase.
As per the US, these purchases would not bring any profits for Russia.
Amid the waiver, Indian imports of Russian crude oil rose 34% in June 2026 to record levels. According to the Centre for Research on Energy and Clean Air, these imports were valued at €4.5 billion, accounting for roughly 36% of Russia’s crude oil export revenues.
After China, India is the second-largest buyer of Russian crude oil.
If the bill is passed and implemented, it would bring more trouble for Indo-US ties.
India and the US are currently in talks to finalise a bilateral trade agreement, which would bring the total tariffs against New Delhi down to 18 per cent.
Indian goods currently enter the US at a 15 per cent tariff, after the US Supreme Court struck down Trump’s tariff hikes. However, this is a temporary duty and is due to expire on July 24.
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