India faces a new layer of US trade pressure after Congress approved legislation targeting Russia’s energy and defence sectors and giving Trump sweeping powers to penalise countries that continue buying Russian energy.
BY PC Bureau
September 17, 2026: India and China could face a new wave of US trade pressure after the US Congress approved sweeping legislation aimed at punishing Russia over its war in Ukraine. The measure gives President Donald Trump the authority to impose tariffs of up to 100 per cent on major purchasers of Russian oil and gas, putting countries such as India in Washington’s crosshairs.
The Republican-controlled House of Representatives approved the legislation 262-159 on Wednesday, sending it to Trump after the Senate passed it 86-11 last month. Trump has indicated that he intends to sign the bill.
The legislation, named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, represents a major escalation in the US legislative campaign against Moscow. It targets Russia’s energy and defence sectors, banks, senior officials and the so-called shadow fleet of tankers accused of helping Moscow circumvent Western restrictions.
Its most consequential provision for countries such as India is the secondary-tariff mechanism. Trump would be able to impose tariffs of as much as 100 per cent on major foreign buyers of Russian energy. India and China are among the world’s biggest purchasers of Russian crude, although the bill does not automatically impose such tariffs on either country.
The provision has also exposed divisions among Democrats. While many Democrats support tougher economic pressure on Russia, some opposed giving Trump broader authority to impose tariffs. Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, argued that the legislation gives the White House excessive discretion over trade policy. He said he would have supported the sanctions package without the secondary-tariff provisions.
🇺🇸🇷🇺 Congress just handed Trump the power to hit China and India with 100% tariffs over Russian oil
The House sent it to his desk 262 to 159.
It sanctions Russia’s shadow fleet, Putin, his oligarchs and banks, extends the Iran Sanctions Act of 1996, and lets the president…
— Mario Nawfal (@MarioNawfal) September 16, 2026
Despite those objections, 58 Democrats joined Republicans in voting for the bill, while seven Republicans voted against it. The measure therefore secured bipartisan support even as lawmakers disagreed over the extent of presidential tariff powers.
The legislation comes as the war in Ukraine continues without a political settlement. Ukrainian President Volodymyr Zelenskyy has repeatedly urged Washington to increase pressure on Moscow, arguing that tougher economic measures could help push Russia towards negotiations.
The bill also expands measures against companies and foreign entities assisting Russia’s military and extends sanctions involving Iran. The Iran provisions were among the changes that helped secure Trump’s support for the legislation.
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Trump had previously resisted congressional efforts to legislate broad sanctions and tariff powers, preferring to retain greater control over sanctions and trade decisions. The Russia legislation had therefore remained stalled for more than a year despite strong bipartisan backing in Congress.
The measure was originally championed by Republican Senator Lindsey Graham, who died unexpectedly in July. Before his death, Graham had spent more than a year negotiating the legislation and had secured White House backing for the revised package.
The House vote came as lawmakers prepared to leave Washington ahead of the November midterm elections. The bill now goes to Trump for his signature, after which the administration will determine how and against whom the new tariff authority is used.
For India, the immediate issue is therefore not an automatic 100 per cent tariff but the creation of a new legal mechanism that could allow Washington to penalise major purchasers of Russian energy. How aggressively the Trump administration uses that authority could have significant implications for India’s trade and energy relationship with the United States.
