US President Donald Trump has signed a new law giving his administration congressional authority to impose tariffs of up to 100% on goods from countries that are among the biggest buyers of Russian oil and natural gas. India and China could be affected because both remain major importers of Russian crude.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 does not automatically impose a 100% tariff. Instead, it gives the US president the power to decide whether tariffs should be imposed, which countries should be targeted and what rate should apply, up to the 100% ceiling.
Under the legislation, the US Trade Representative, in consultation with the secretaries of state and energy, will identify the five largest importers of Russian crude oil and natural gas based on the previous 12 months of trade data. The list will be reviewed every 180 days.
India has already expressed concern over the legislation. The Ministry of External Affairs said the possible impact of the law could extend beyond India-US relations and affect international energy markets. India has also maintained that it will take necessary steps to protect its trade and economic interests.
Union minister of state for external affairs Kirti Vardhan Singh reiterated India's position, saying that New Delhi follows an independent foreign policy and will take steps to protect the country's interests.
China has also responded to the new US law, saying it reserves the right to take necessary measures to protect its interests and those of Chinese companies.
The legislation is the result of an 18-month-long process in the US Congress. An earlier version introduced in 2025 proposed tariffs of up to 500% on countries buying Russian energy. The final version reduced the maximum tariff to 100% and limited its scope to the five largest buyers.
The law also gives Trump the authority to waive tariffs if he certifies that doing so is in the national interest of the United States. A permanent waiver would require the affected country to stop purchasing Russian energy and provide assurances that it will not resume those purchases.
Indian exporters have warned that high tariffs could significantly affect shipments to the US. The textile and apparel industry, which has a large number of small and medium-sized businesses, has also raised concerns about the possible impact.
For now, no new tariff rate has been announced by Washington. The actual effect on Indian trade will depend on whether the administration exercises the new authority, the rate it chooses and which products are ultimately covered.
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