US President Donald Trump has signed a sweeping Russia sanctions law that gives Washington new authority to impose targeted tariffs of up to 100% on major buyers of Russian oil and natural gas, placing India under renewed trade scrutiny.
The White House confirmed that Trump signed H.R. 5334, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, on September 18. The administration said the law expands statutory sanctions, tariffs and prohibitions against Russia while extending existing sanctions on Iran.
The measure previously passed the Senate by an 86-11 vote. Senate material says the legislation allows the president to impose duties of up to 100% on the five largest importers of Russian crude, the five largest buyers of Russian natural gas and major countries facilitating sanctions evasion.
India tariff
The India tariff risk does not mean Indian goods automatically face a new 100% duty. The legislation creates authority for the US president to impose tariffs when statutory conditions are met, leaving considerable discretion over when the measures are activated and how broadly they are applied.
This distinction is important for Indian exporters. Trump’s signature expands Washington’s options, but it does not by itself establish a blanket 100% tariff on imports from India.
Energy
Energy security remains central to India’s response. India has repeatedly emphasized the need for reliable and affordable supplies as it meets growing domestic demand. A recent Government of India statement at the G20 Energy Abundance Ministerial also stressed secure, affordable and reliable energy and resilient supply chains.
That policy makes diversification important, particularly during periods of geopolitical disruption and volatile oil prices.
Russia oil
Russia oil purchases remain the main reason India could come under the new tariff framework. India has developed significant energy ties with Moscow, while the latest US legislation seeks to reduce revenue reaching Russia through crude oil and natural gas exports.
The law also targets Russian officials, financial institutions and vessels associated with sanctions evasion, including elements of Russia’s so-called shadow fleet.
US law
The US law broadens Washington’s economic tools against Russia rather than imposing only traditional financial sanctions. The White House describes the measure as expanding sanctions, tariffs and other prohibitions, while the Senate-backed provisions preserve presidential authority to target major Russian energy buyers.
The legislation also extends the Iran Sanctions Act for another five years.
India trade
India trade with the United States could face fresh uncertainty depending on how the administration implements the new authority. Washington previously imposed an additional 25% duty on Indian goods in August 2025 over Russian oil purchases, before removing that measure effective February 7, 2026. The February order also said US agencies would continue monitoring whether India resumed importing Russian oil.
For New Delhi, the challenge now is balancing energy security, competitively priced crude and access to the US market. The immediate impact will depend on future US implementation decisions rather than Trump’s signature alone.
