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100% Tariff Fear Looms As US House Advances Russia Sanctions Bill

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100% Tariff Fear Looms As US House Advances Russia Sanctions Bill

by OB Bureau
September 16, 2026
in India
Reading Time: 2 mins read
100% Tariff Fear Looms As US House Advances Russia Sanctions Bill

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New Delhi/Washington, DC: Concerns have grown for India after the US House of Representatives advanced the Russia Sanctions Bill that would give Donald Trump the authority to impose 100% tariffs on major buyers of Russian oil and gas.

The legislation – known as the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 – cleared a key procedural hurdle in the House on Tuesday evening after two Democratic Party lawmakers switched sides and voted alongside the Republicans.

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The sanctions bill got passed by a 214-211 vote, catching the Democratic leadership off guard. The bill is now set for a final House vote, as reported by The Economic Times.

The bill has been opposed by Democratic Congressman Gregory Meeks, the ranking member of the House Foreign Affairs Committee, who has argued that it would give Trump broad authority to impose tariffs without sufficient guardrails.

The US Senate passed the bill on August 7 with an overwhelming 86-11 vote. The legislation targets Russia’s leadership and energy sector and also seeks sanctions against vessels in the so-called “shadow fleet” that help Moscow circumvent restrictions on oil shipments.

This advancement of the bill comes at a time when pro-Ukraine groups have stepped up lobbying efforts on Capitol Hill. The Ukraine Action Summit, organised by the American Coalition for Ukraine, is underway in Washington as the groups push lawmakers to maintain support for Kyiv.

The legislation aims to tighten economic pressure on Russia over its war against Ukraine, with the US arguing that Moscow’s crude oil revenues are helping fund the conflict.

A key provision would authorise Trump to impose tariffs of up to 100 per cent on countries that continue buying Russian oil and gas or facilitate sanctions evasion. A House amendment explicitly names India and China among the countries that could face the additional tariffs, along with Türkiye, the UAE, Azerbaijan, Hungary, Slovakia, Singapore, Kazakhstan and Kyrgyzstan.

The Senate version passed in August did not specifically name Russia’s trading partners. Instead, it referred to the five largest importers of Russian oil and gas by volume. The House version has therefore brought India more explicitly into the tariff debate.

US trade bodies had earlier urged senators to oppose the bill as additional tariffs on India would lead to price rise in the American market.

The legislation must clear the House before it can be sent to Trump for his signature. The House is due to begin an early recess on Thursday and is expected to return on November 9 after the US midterm elections.

This comes even as India and the US continue to work towards formalising their trade agreement. Commerce Secretary Rajesh Agrawal has said the deal is “more or less” finalised, with the two sides working on a framework for preferential market access before signing it at an appropriate time.

“There are few things which both sides are discussing, but it will be signed at an appropriate time,” Agrawal said on the sidelines of the Global Fintech Fest 2026.

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