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US President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (H.R. 5334) into law on 18 September 2026.
The law lets the US President levy tariffs of up to 100% on the five largest foreign buyers of Russian crude oil and natural gas - a group that includes India and China.
It also allows tariffs of up to 500% on all imports from Russia and up to 100% on countries aiding Russia's 'shadow fleet' of tankers; the powers are discretionary and lapse after five years.
The Act extends the Iran Sanctions Act of 1996 by five years, to 2031.
Russia supplied about 30% of India's crude oil imports in FY 2025-26, and an India-US interim trade deal in February 2026 had already cut US tariffs on Indian goods from 50% to 18%.
Signed 18 September 2026. Widens US sanctions on Russia's energy and defence sectors, its banks and its shadow tanker fleet, and gives the US President discretionary tariff powers of up to 500% on Russian imports and up to 100% on the largest foreign buyers of Russian energy. The tariff authority expires five years after enactment.
The long-standing US law authorising sanctions on investment in Iran's energy sector; the 2026 Act extends it by five years, to 2031.
The Act works by penalising third countries for trading with Russia rather than by sanctioning Russia directly - the legal design that makes India and China exposed even though neither is the target of the law.
Cabinet-level agency that will identify the countries covered by the new tariff powers and recommend the rates to the President during the 30-day period before the law takes effect
Passed the Act - Senate 86-11 on 7 August 2026, House of Representatives 262-159 on 16 September 2026 - before it went to the President for signature
New Delhi-based trade think tank; advised India to keep buying Russian crude on commercial grounds while negotiating firmly, warning that cutting purchases may not shield India from tariffs imposed under other trade mechanisms
An additional 25% US tariff on Indian goods over Russian oil purchases takes effect, raising the total on most Indian exports to 50%
India and the United States announce an interim trade deal cutting US tariffs on most Indian goods from 50% to 18%
Senator Lindsey Graham, the bill's lead sponsor, dies; the legislation gains momentum as part of his legacy
The US Senate passes the bill 86-11
The House of Representatives passes it 262-159 and sends it to the President
President Trump signs it into law; it takes effect within 30 days
GS Paper II > International relations - effect of policies of developed countries on India's interests; GS Paper III > External sector and energy security
General Awareness > International trade and economy
General Awareness > International current affairs
A duty imposed on a third country for trading with a sanctioned state, rather than on the sanctioned state itself.
Ageing, opaquely owned tankers used to move Russian oil outside the reach of Western sanctions and price caps.
A provision ending a law's operation after a fixed period - here, the tariff powers expire five years after enactment.
The cabinet-level US agency responsible for trade policy, tasked here with identifying the countries the new tariffs may apply to.