Why Bill allowing Trump to impose 100% tariff on Russian oil buyers is a double-edged sword

Passage of Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 in House of Representatives gives Trump power to impose tariffs of up to 100% on major buyers of Russian oil.

New Delhi: The passage of a Bill in the US House of Representatives targeting Russian oil buyers has added a fresh layer of uncertainty for Indian refiners already dealing with sharply higher crude costs. The Bill, awaiting his signature, will allow US President Donald Trump to impose tariffs of up to 100 percent on countries buying Russian energy.

The development comes at a politically sensitive time, with the US and India already engaged in difficult trade negotiations and Washington stepping up pressure on countries that continue to buy Russian energy.

Energy sector experts said the House vote appeared to be driven as much by politics as by the stated objective of cutting Russia’s energy revenues. It is unclear whether Trump will actually impose 100 percent tariffs just ahead of the mid-term polls, given how oil prices have already crossed $100 per barrel and any new tariff will push oil prices through the roof.

“Today’s House vote on Graham’s Bill tells me that politics is driving the decision, with little regard for the economic consequences. I see it largely as a reaction to BRICS’ recent success,” Natalia Katona, a commodity analyst based in Abu Dhabi, told ThePrint.

The US House of Representatives late Wednesday night (Thursday morning in India) passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 262-159, sending it to Trump for his signature. The US Senate had passed the legislation 86-11 last month.

Once signed, the 61-page legislation would allow Trump to impose tariffs of up to 100 percent on the five largest importers of Russian crude oil or natural gas. India and China, the two biggest buyers of Russian crude, could therefore come under its scope.

But the legislation does not automatically impose a 100 percent tariff on India. Instead, it gives the US President the legal authority to impose such measures and to decide whether and when to use those powers. The Bill also provides for a reassessment of the countries covered by the tariff provisions every 180 days.

This distinction could be important for India, as the threat of tariffs could give Washington additional leverage in trade negotiations with New Delhi.

Katona expects the threat to be used as a bargaining tool rather than immediately implemented in its broadest form. “I expect the threat to become a bargaining tool against China and India, especially in trade talks with New Delhi,” she said. “Sweeping implementation still looks unlikely to me. The damage to energy markets would be so severe that Washington would also pay a heavy price.”