US Senate Passes Russia Bill, India Faces Tariff Risk

The U.S. Senate has approved a sweeping Russia sanctions package that could give President Donald Trump the authority to impose tariffs of up to 100% on goods from major buyers of Russian energy, including India.

The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, passed the Senate by an 86–11 vote. It is aimed at putting additional economic pressure on Moscow and reducing the revenue Russia receives from energy exports.

India is among the countries that could be affected because of its continued purchases of Russian crude oil. The measure identifies the largest buyers of Russian energy as potential targets, with China, India, Slovakia, Hungary and Azerbaijan among the major Russian crude purchasers cited by Senate aides.

The tariff provision does not mean India will immediately face a 100% duty. Instead, the legislation would create the authority for the U.S. president to impose tariffs of up to that level if the required conditions are met. The bill also contains provisions allowing certain sanctions to be waived in the U.S. national interest.

The revised legislation represents a significant change from an earlier proposal that contemplated tariffs as high as 500%. The lower 100% ceiling was part of efforts to build wider support for the measure while retaining pressure on countries that continue to purchase Russian energy.

Beyond tariffs, the bill targets Russian officials, financial institutions, energy projects and the network of vessels known as Russia's “shadow fleet,” which is used to help move Russian oil despite international restrictions.

For India, the development adds another layer of uncertainty to its trade relationship with Washington. A tariff of this scale, if eventually imposed, could make Indian products significantly more expensive in the U.S. market and put pressure on exporters across affected sectors.

However, the legislation is not yet the final word. The bill now moves to the U.S. House of Representatives, where its future remains uncertain. If it passes Congress and is signed into law, the administration would then have to decide whether and how to use the tariff authority.

Why it matters: The Senate vote increases pressure on India and other major Russian energy buyers while linking U.S. trade policy more directly to Russia's energy revenues. For India, the key issue will be whether Washington ultimately uses the new tariff authority or pursues negotiations and exemptions instead.