President Trump signed a sweeping new sanctions law on Friday aimed at increasing economic pressure on Russia over its war in Ukraine, a move that also creates new trade risks for some of Russia's biggest energy customers.
The White House confirmed the president signed H.R. 5334, formally called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, into law on September 18. The legislation expands existing sanctions on Russia's leadership, its energy sector, and companies tied to its defense industry and so-called shadow fleet of oil tankers used to move crude around existing restrictions. It also extends the Iran Sanctions Act of 1996 for another five years, continuing long-standing U.S. authority to restrict economic activity connected to Iran's energy and weapons programs.
One provision has drawn particular attention in New Delhi and Beijing. The law gives the president authority to impose tariffs of up to 100% on countries that continue purchasing Russian oil and natural gas, a category that includes both India and China, two of Russia's largest energy customers. Importantly, the law does not automatically trigger those tariffs. Any duties would depend on the administration choosing to use the authority Congress granted it, and the measure only takes effect, and requires the administration to act, within 30 days of signing. India's government had already raised concerns with Washington in the days before the signing about what the legislation could mean for bilateral trade and energy ties.
The bill's passage comes as U.S. lawmakers continue to press for tougher measures against Russia over the war in Ukraine, which is now well into its third year. Senator Jeanne Shaheen, in comments ahead of the signing, argued that sustained economic pressure was needed to counter what she described as an expectation in Moscow that Western support for Kyiv would eventually fade. Congress has also continued pushing for additional air defense support for Ukraine, even as fighting continues along the eastern front and Russian strikes have reached border areas near Poland and Moldova in recent days.
Watch for whether the administration actually moves to impose the new tariff authority against India, China or other Russian energy buyers within the 30 day window, and how those governments respond.
Does this mean India and China now face 100% tariffs?
Not automatically. The law gives the U.S. president the authority to impose such tariffs on Russian energy buyers, but any actual duties depend on the administration deciding to use that power.
What else does the law do?
It expands sanctions on Russia's energy sector, leadership, defense-linked companies and oil tanker fleet, and extends existing U.S. sanctions authority tied to Iran for another five years.