Since Donald Trump took office for a second term, he has been creating trouble for India on multiple fronts. While calling India an ally, he has simultaneously been striking hard with tariffs. Even as trade talks between India and the US continue, he is now preparing to deliver yet another shock. Trump is gearing up to once again hit countries like India and China, which purchase oil from Russia, with fresh tariffs. The US Senate has now approved a bill related to this.
Notably, the US Senate approved this bill — named after recently deceased Senator Lindsey Graham, the “Sanctioning Russia and Iran Act 2026” — by a vote of 86-11. The bill will come before the House of Representatives on August 31. If it is approved there as well, it could subsequently become law with the signature of the US President. Should this bill come into effect, India risks facing tariffs as high as 100 percent.
However, it is understood that the primary purpose behind this bill is to increase pressure on Russia. America’s goal is to intensify pressure on Russia to bring an end to the ongoing war with Ukraine. Trump had previously described this as an “economic bunker buster.” The bill is reportedly designed to target Russian officials, financial institutions, and energy projects. Under this bill, the US President would gain the authority to impose extraordinarily high tariffs on countries that import oil from Moscow. If implemented, this would impact countries such as India, China, Slovakia, Hungary, and Azerbaijan. The Trump administration had earlier proposed that these tariffs go as high as 500 percent. It is notable that, following tensions in West Asia and other international developments, the tariff cap was later revised down to 100 percent.