The legislation, originally proposed by the late Senator Lindsey O. Graham to choke financing for Russia’s war in Ukraine, was amended to add Iran and to extend sanctions through 2031.
Under the new law, thirty days after enactment the United States can levy a 100% tariff on products from any of the five largest importers of Russian crude oil or natural gas that continue those imports, a category that includes India, which together with China accounts for the bulk of Russian oil shipments.
Data from July 2026 show Russian crude made up more than 51% of India’s oil imports, a share that rose after the Supreme Court struck down an earlier 25% punitive tariff on Indian imports of Russian oil.
A second trigger for tariffs targets the five nations deemed to have facilitated Russian oil‑sanctions evasion; Indian oil marketers have repeatedly asserted that their purchases comply with sanctions, lowering the risk of qualification under this clause.
The 100% duty would be added to existing tariffs imposed under Section 301 of the Trade Act of 1974 – a 10% levy on Indian imports for forced‑labour concerns – and Section 232 of the Trade Expansion Act of 1962, which already raises duties on steel, aluminium, copper and related products to 50%.
The law does not take effect immediately. After the initial 30‑day window, the U.S. Trade Representative, in consultation with the Secretaries of State and Energy, must determine whether India still meets the criteria, and a further review is required within 180 days of any tariff imposition.
Analysts warn that a 100% tariff on top of the existing duties could severely erode India’s competitiveness in U.S. markets, recalling that a 50% tariff imposed between August 2025 and February 2026 slowed Indian exports to the United States from an 18% year‑on‑year gain to just 3.8%.
If India curtails Russian oil purchases to avoid the tariff, it may face higher fuel costs domestically, as alternative supplies are limited and oil prices remain above $100 a barrel, potentially sparking price hikes ahead of key state elections next year.
The Act does provide a waiver mechanism: the president may certify to Congress that waiving the tariff serves U.S. national interests, or the tariff could be lifted if Russia signs a peace agreement accepted by Ukraine and ends hostilities.