Tariffs Target Russian Energy Trade
US Bill Authorizes 500% Tariffs on Countries Buying Russian Energy, Targeting India and China
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Key Points
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Trump expressed support for the Sanctioning Russia Act and signaled openness to expanding sanctions beyond Russia, including possible secondary sanctions on India and China.
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Expiry of the U.S. Treasury waiver on June 17, 2026 created a legal grey zone for India's purchases of Russian crude, raising the risk of sanctions if the full 500% tariff regime is enacted.
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The bill would authorize, rather than mandate, tariffs up to 500% on imports from countries that continue buying Russian energy, with China and India as primary targets (together they account for roughly 70% of Russia’s oil and gas exports). It also covers uranium and others helping Moscow dodge sanctions.
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The Sanctioning Russia Act has broad bipartisan support in the Senate, with about 84–85 co-sponsors, and has been framed as a legacy priority for the late Senator Lindsey Graham; momentum increased around July 2026 with discussions of revised language.
A bipartisan bill in the U.S. Senate would let the president hit countries buying Russian energy with tariffs as high as 500%. The Sanctioning Russia Act targets China and India most directly — together they account for roughly 70% of Russia's oil and gas exports, according to Bloomberg Law.
The bill has around 84–85 co-sponsors in the Senate and carries the legacy of the late Senator Lindsey Graham, who championed it alongside Senator Richard Blumenthal. President Trump has signaled support for the measure, framing it as a major tool to cut off Moscow's energy revenues.
500% Tariffs Would Hit China and India Hardest
The bill would authorize — not require — the president to impose tariffs of up to 500% on imports from any country that keeps buying Russian oil, gas, or petroleum products. Bloomberg Law reports the original version targeted the top five buyers of Russian crude and gas with tariffs up to 100%. A revised version raised that ceiling to 500%.
China and India are the primary targets. The two nations together buy about 70% of Russia's energy exports. The bill also covers uranium purchases and countries helping Moscow dodge existing sanctions, according to Whalesbook.
India Faces a Legal Grey Zone After Treasury Waiver Expires
A key deadline looms for India. A U.S. Treasury waiver that shielded Indian buyers of Russian crude from sanctions expires on June 17, 2026. After that date, India's continued purchases could fall directly into the bill's crosshairs, creating a legal grey zone with serious economic risk.
Analysts warn that a full tariff regime could slow India's economy and hit its export-driven industries hard. India has built much of its recent energy strategy around discounted Russian crude, which became widely available after Western sanctions followed Russia's 2022 invasion of Ukraine.
Revised Bill Eases — But Does Not Remove — Tariff Threat
Senators released an updated version of the bill around July 2026 with softened language. SRN News reported that the revision reduces the direct tariff threat on China, India, and other major Russian energy importers. The changes appear designed to give the president more diplomatic flexibility before pulling the tariff trigger.
Investing.com noted that the updated bill was unveiled after the sudden death of Senator Graham, who had made it a signature priority. Co-sponsors and Senate allies framed the revision as a way to keep momentum alive while building broader international support for pressure on Moscow.
Global Energy Prices Could Spike If the Bill Becomes Law
Economists and market analysts expect a rapid spike in global oil and gas prices if the tariffs take effect. Buyers would scramble to replace Russian supply. That would push energy costs up sharply, fueling inflation across Europe and Asia — the regions most exposed to Russian energy flows.
Market pricing already reflects concern. Some forecasts suggest oil could reach new highs by year-end if the bill passes and major buyers like China and India are forced to pivot away from Russian crude. The geopolitical ripple effects — from trade tensions to diplomatic standoffs — are expected to be significant.
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