Russia Sanctions Bill: Washington just handed itself a powerful new lever against Russia’s oil trade. India and China sit directly in its path. President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law on Friday, September 18. The bill passed the House 262-159 with bipartisan backing, after clearing the Senate 86-11 the previous month.
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Why India And China Are In The Crosshairs
China buys roughly half of Russia’s crude oil exports. India follows closely behind at 37 per cent, according to the Centre for Research on Energy and Clean Air. That makes both countries the law’s most exposed targets. An earlier House amendment, proposed by Congressman Steny Hoyer, went further and explicitly named ten countries eligible for the tariffs, including India, China, Turkiye, and the UAE, though that naming does not itself trigger any tariff.
No Automatic Tariff, But A Real Threat
Importantly, signing the bill does not automatically hit India with a 100 per cent tariff. The law gives Trump discretion, not an obligation, to impose it, and the list of targeted countries gets reassessed every 180 days. No India-specific rate was announced alongside the signing.
This would not be the first time Washington has used tariffs to pressure India over Russian oil. Trump already imposed 25 per cent reciprocal tariffs on India in 2025, plus another 25 per cent tied specifically to Russian oil purchases, pushing total duties to 50 per cent.
India’s Response So Far
India’s Foreign Ministry confirmed it has already raised concerns with Washington over the bill’s potential impact on bilateral relations and global energy markets. The ministry said India will keep sourcing energy from multiple suppliers based on market conditions, and will act to protect its own trade and economic interests.
What India Is Already Doing
India has been diversifying its crude basket for months, adding suppliers like Saudi Arabia, Nigeria, Venezuela, and the US to reduce reliance on Russian barrels. But replacing that volume entirely would likely mean higher freight and procurement costs.
