Trump signs sanctions bill targeting Russia’s energy sector with tariffs up to 500%

President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law on September 18, 2026, unleashing one of the most aggressive sanctions packages aimed at Moscow’s energy revenues since Russia’s invasion of Ukraine. The legislation authorizes tariffs of up to 100% on the top five importers of Russian crude oil and natural gas, and a staggering 500% tariff on Russian goods shipped directly to the United States.

The bill cleared the House on September 16 with a 262-159 vote, shortly after passing the Senate.

Who gets hit hardest

China and India are the obvious targets here. The two countries together account for roughly 87% of Russia’s crude oil exports, with China absorbing approximately 50% and India around 37%. Under the new law, both nations could face triple-digit tariffs on their Russian energy purchases.

The legislation also takes aim at Iran, extending existing sanctions on Tehran’s energy and weapons sectors through 2031.

The fine print and the escape hatches

Buried in the legislation are waiver provisions that allow the President to grant exceptions on national security grounds. These waivers are primarily intended for countries that demonstrate measurable progress in reducing their dependence on Russian energy.

The tariff provisions themselves come with a built-in sunset clause, expiring after five years.

Critics have raised concerns about the broad powers the law grants to the executive branch. Giving any president the authority to impose 500% tariffs is a significant delegation of economic firepower.

Some observers argue that maximum-pressure sanctions could complicate diplomatic efforts to end the conflict in Ukraine.

Global energy market implications

If enforced aggressively, the tariffs would disrupt the flow of roughly 87% of Russia’s crude exports, forcing a massive reallocation of global supply chains. Countries currently buying Russian oil at a discount would need to source barrels elsewhere.

India faces its own dilemma. New Delhi has carefully maintained relationships with both Washington and Moscow, purchasing discounted Russian crude while deepening strategic ties with the US. Being forced to choose sides on energy procurement puts that balancing act under serious strain.

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