Trump’s new law gives him 100% tariff power over India, China — but plenty of discretion too
US President Donald Trumpsigned into law the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026” (H.R. 5334), officially authorising and expanding statutory sanctions, tariffs and prohibitions on Russia while extending existing sanctions on Iran, the White House confirmed. The law comes into effect within 30 days and requires Trump to impose tariffs of up to 100% on countries buying Russian oil and gas — with India and China, Moscow’s two largest energy customers, squarely in the legislation’s sights.
What The Law Actually Requires
Under the Act, Trump must impose duties of up to 100% on goods imported from the five biggest buyers of Russian crude oil or natural gas, based on purchase volumes over the 12 months before the law’s enactment. The provision also extends to any country that knowingly makes new Russian oil or gas purchases after the law takes effect, as well as the top five countries found to be helping Moscow evade existing sanctions. The law hands Trump considerable discretion over the details — which countries ultimately face tariffs, the exact rates applied, and whether any sanctions get waived altogether. According to a Reuters analysis cited by trade experts, the absence of clearly fixed criteria gives the administration real latitude in deciding who falls into the “top five” category, with Brazil, Japan and select European Union nations potentially in the mix depending on interpretation. Countries that have significantly cut their reliance on Russian gas do get an explicit exemption from gas-related duties, and non-exempt buyers will face recurring 180-day reviews by the US Trade Representative.
Beyond Tariffs: A Broader Sanctions Push
The legislation also targets Russia’s “shadow fleet” — the network of vessel owners, operators, managers and insurers helping keep sanctioned Russian energy shipments moving — along with other entities supporting Russian energy production or sanctions evasion. It further folds in a five-year extension of existing sanctions on Iran’s energy and weapons sectors, a provision Trump had specifically pushed for. The bill honours the late Senator Lindsey Graham, who spent more than a year negotiating the legislation before his death in July, and passed the House by a 262-159 vote after clearing the Senate 86-11 in August.
Not India’s First Encounter With This Pressure
This marks the latest escalation in a pressure campaign that began in August 2025, when Trump imposed an additional 25% tariff on Indian goods over its Russian oil purchases — on top of an earlier 25% duty — bringing total levies to 50%. Trump has previously credited that tariff with dealing Russia’s economy a “big blow.” India has consistently defended its energy purchases on affordability and energy-security grounds, and has separately signalled it will continue securing energy for its 1.4 billion people through diversified sourcing, while warning Washington that further tariffs could strain bilateral ties.
The Xi Jinping Timing
The signing comes just days before Chinese President Xi Jinping‘s first visit to the United States in over a decade, for high-stakes talks at the White House. In an unusual break from his typical practice of receiving leaders at the White House itself, Trump is expected to personally welcome Xi’s arrival at Joint Base Andrews, underscoring the significance both sides are placing on the visit — even as the newly signed law hangs directly over one of the two countries it names most explicitly.
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