Trump signs law paving way for 100% tariffs on India, China

WASHINGTON: US President Donald Trump has signed legislation expanding sanctions on Russia and Iran, giving his administration new powers to impose tariffs of up to 100 percent on countries that continue buying Russian oil and gas.

The law, signed on Friday, September 18, does not immediately impose a 100 percent tariff on India or China. Instead, it gives Trump the authority to impose such duties under specified conditions, with implementation possible within 30 days.

The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, targets Russia’s energy and defence sectors and includes measures against entities involved in sanctions evasion. It also gives the US president expanded authority to penalise major foreign purchasers of Russian energy.

Under the new law, tariffs of up to 100 percent can be imposed on goods entering the United States from countries among the five largest purchasers of Russian crude oil or natural gas, based on the relevant 12-month period. China and India are among the major buyers of Russian energy and could therefore face the new measures.

The move adds a fresh layer of uncertainty to global trade and energy markets, particularly because the legislation gives the administration considerable discretion over which countries are targeted and what tariff rates are ultimately applied.

India has already indicated that it intends to protect its trade and energy interests amid the US pressure over Russian oil purchases. Indian officials have warned that additional tariffs could affect bilateral economic ties.

The legislation also focuses on Russia’s so-called “shadow fleet” — vessels and related companies accused of helping transport Russian oil or evade sanctions. Ship owners, operators, managers, insurers and other entities involved in covered activities can face restrictions under the expanded framework.

For China and India, the potential tariffs could complicate their energy trade with Russia while also creating challenges for their commercial relations with Washington.

The law also extends existing US sanctions related to Iran, making the legislation broader than measures targeting Russian energy alone.

For now, however, no 100 percent tariff has been imposed on India or China under the new law. The key question is whether and how the Trump administration will use the newly granted authority during the 30-day implementation period.