US House passes bill allowing 100% tariff on countries buying Russian energy

The United States has taken a major step to increase economic pressure on countries buying large quantities of oil and gas from Russia. The US House of Representatives passed the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026" by 262 votes to 159. The US Senate had earlier approved the bill on August 7 by 86 votes to 11. With the process complete in both chambers of Congress, the bill has now been sent to President Donald Trump for his signature.

An important point here is that a 100 percent tariff on India does not come into effect immediately just because Congress has passed the bill. The bill gives the Trump administration the authority to impose tariffs of up to 100 percent on goods from major countries that buy Russian energy, subject to certain conditions. In other words, whether the tariff is actually imposed will depend on a future decision by the administration.

The bill provides that tariffs can be imposed on the five largest importing countries of Russian crude oil or gas, as well as on major countries that help Russia evade energy sanctions. India and China are large buyers of Russian energy, and there is discussion that this provision could affect both countries.

India's Ministry of External Affairs has said it is monitoring these developments and keeping track of the situation going forward. The central government has made clear that India is committed to ensuring the energy security of its 1.4 billion citizens. The government has said that energy purchases from different sources will continue depending on changing market conditions, and that whatever steps are necessary to protect India's trade and economic interests will be taken.

The main aim of the bill is to put pressure on Russia's energy earnings. It includes provisions for sanctions on Russian officials, financial institutions and the energy sector, as well as on Russia's so-called "shadow fleet". Sanctions related to Iran have also been included in the bill.

With the bill passed by both chambers of Congress, it has now reached the stage of President Donald Trump's signature. It will become law once he signs it. After that, it will be important to see against which countries, to what extent and under what circumstances the administration uses the tariff authority granted under this law.