Trump Signs Bill That Could Slap 100% Tariffs on India and China for Buying Russian Oil

In a move that many analysts are calling a fresh diplomatic squeeze on Moscow, President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on Tuesday. The bill gives the White House the authority to levy tariffs of up to a full 100% on the five largest countries that buy Russian oil or gas.

It’s not a trigger‑hammer, though. The legislation does not automatically slap a hundred‑percent duty on any nation. Instead, it hands Trump a broad discretion – he can decide whether to act, and if so, at what rate. That nuance matters because two of the biggest potential targets, India and China, are watching the situation very closely.

India, which imports a sizable share of Russian crude, was quick to warn Washington that such measures could strain bilateral ties. New Delhi stressed that its top priority is energy security – keeping petrol, diesel and cooking gas flowing to a massive population – and that it will continue sourcing oil based on market realities.

China, another major buyer, finds itself in a similar spot. While the bill mentions the “top five” purchasers, the actual application of tariffs will depend on the President’s judgment, and the law does allow for waivers under certain conditions.

The timing of the signing is notable. In just a few days, Chinese President Xi Jinping is slated to land in Washington for a White House visit – his first in a decade and the second face‑to‑face encounter with Trump this year after a meeting in Beijing back in May. Trade, Taiwan, the war in Ukraine, Iran and even artificial intelligence are expected to dominate the agenda.

For the United States, the goal of the act is clear: chisel away at Moscow’s revenue stream from energy exports and amplify pressure on Russia over its war in Ukraine. By targeting the revenue lifeline, Washington hopes to force a rethink in Moscow’s calculations.

Whether the tariff threat will actually be used – and if it will be applied to India, China, or both – remains to be seen. What is certain is that the new law adds another layer of complexity to an already tense set of relations between the U.S., Beijing and New Delhi, and it will be a point of heavy scrutiny during Xi’s upcoming talks.