US Senate Bill proposes 100% tariffs on India, China and other buyers of Russian oil

A bipartisan Bill proposing 100 per cent tariffs on imports from countries purchasing large volumes of Russian oil or helping Moscow evade energy sanctions has been introduced in the US Senate, with India and China among the nations that could be affected.

The legislation, introduced on Thursday with the backing of more than 60 senators, seeks to increase economic pressure on Russia by targeting countries that continue to buy its crude oil or facilitate sanctions evasion.

Known as the Lindsey O. Graham Sanctioning Russia Act of 2026, the Bill was originally conceived by Democratic Senator Richard Blumenthal and the late Republican Senator Lindsey Graham. It is intended to tighten sanctions on Russia's political leadership, financial institutions, energy sector and networks accused of helping Moscow circumvent existing restrictions.

Under the proposal, 100 per cent tariffs would be imposed on imports from countries identified as the world's five largest purchasers of Russian crude oil or natural gas, or among the top five facilitators of Russian oil sanctions evasion. Senator Blumenthal has identified China, India, Slovakia, Hungary and Azerbaijan as the countries expected to fall within the scope of the measure.

The legislation also directs the US Trade Representative to review the list of affected countries every 180 days and adjust tariff rates to reflect changes in purchasing patterns.

However, the Bill provides exemptions for countries whose imports of Russian natural gas account for less than 15 per cent of Russia's total gas exports and which are taking significant steps to reduce their dependence on those supplies. The exemption is expected to benefit several European countries.

The proposed law also excludes US purchases of Russian uranium used in nuclear reactors and medical isotope production, as well as cooperation between Washington and Moscow in the nuclear and space sectors.

An earlier version of the legislation had proposed tariffs of 500 per cent on countries purchasing Russian oil and gas, but the latest draft reduces that rate to 100 per cent.

If approved by Congress and signed into law, the measure would represent one of the strongest trade actions taken by the United States against countries continuing to finance Russia's energy exports since the war in Ukraine began. It would also be the first time Congress has explicitly authorised tariffs as a geopolitical tool aimed at countries accused of indirectly supporting another nation's war effort.

The Bill has been named in honour of Senator Lindsey Graham, who died on 11 July. His sister, Senator Darline Graham, who was appointed to complete the remainder of his term, said passing the legislation would honour his longstanding commitment to strengthening US national security and provide President Donald Trump with additional leverage in efforts to end the war in Ukraine.

The proposal follows another trade measure announced by the United States last month, when Washington proposed a 12.5 per cent tariff on imports from 54 countries, including India, over concerns related to goods allegedly produced using forced labour.

With PTI inputs