US Senate Passes Russia Sanctions Bill

Opening Door to 100% Tariffs on India

Report By Y-Trendz

Washington/New Delhi — August 9, 2026

The United States Senate has cleared a sweeping bipartisan sanctions package targeting Russia's war economy, a bill that also hands President Donald Trump broad authority to impose tariffs of up to 100

percent on countries that continue buying large volumes of Russian oil and gas — placing India squarely in the crosshairs of Washington's next major trade decision.

An 86-11 Vote, Named for a Fallen Senator

The Senate passed the legislation on Friday, August 7, by an overwhelming 86-11 margin. Formally titled the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026," the bill honors the late Republican senator from South Carolina, who spent more than a year building bipartisan support for the measure before his death on July 11, shortly after returning from a visit to Kyiv. His sister, Darline Graham, was subsequently appointed to fill his Senate seat and took part in the final push to secure passage.

The bill's co-author, Democratic Senator Richard Blumenthal of Connecticut, said the legislation's sanctions and tariff provisions were designed to stop "all who are complicit" in Russia's war against Ukraine. Darline Graham described the bill's core logic as forcing countries that keep Russia's economy afloat to choose "between doing business with America or buying cheap Russian energy."

The legislation now moves to the Republican-controlled House of Representatives, which is on summer recess until August 31. Passage there, followed by Trump's signature, would be the final steps before it becomes law. Trump has signaled general support for the measure, though he has also floated the idea of folding additional Iran-related tariff provisions into the bill — a move that could further delay its journey through Congress.

What the Bill Does

At its core, the legislation authorizes the president to impose secondary sanctions on Russian government officials, including President Vladimir Putin, along with oligarchs, state-owned enterprises, financial institutions, and foreign companies supporting Russia's defense industrial base. It also extends the Iran Sanctions Act of 1996 through 2031 and broadens restrictions on Iran's energy, shipping, and financial sectors.

The provision drawing the most attention outside Washington, however, is the tariff mechanism. The bill would empower Trump to impose duties of up to 100 percent on goods imported from the five largest buyers of Russian crude oil or natural gas, as well as nations identified as helping Russia evade existing energy sanctions. Reports on the bill's text name five countries currently meeting that threshold: China, India, Slovakia, Hungary, and Azerbaijan. Notably, no European Union member state beyond Slovakia and Hungary faces equivalent exposure, despite continued Russian energy purchases by some EU economies — a disparity that has drawn criticism from several lawmakers.

Crucially, the tariff is not automatic. The bill gives the president discretion over whether, when, and at what level to apply the duties, meaning India's actual tariff exposure will depend on a subsequent White House decision rather than the legislation itself.

Why India Is in the Frame

India has remained one of Russia's largest oil customers since the invasion of Ukraine, importing discounted crude that has helped New Delhi manage its energy costs while diversifying its supply base. Media reports note India remains Russia's second-largest oil buyer, with imports rising sharply this year.

This is not the first time Washington has used tariffs to pressure India over its Russia ties. In August 2025, the US imposed a 25 percent tariff on Indian goods over New Delhi's continued Russian oil purchases, on top of an existing 25 percent levy — bringing the cumulative tariff to 50 percent, on par with the rate applied to China and Brazil at the time. That episode froze bilateral trade talks for months.

The dynamic shifted after the outbreak of the US-Iran conflict in February 2026, when the closure of the Strait of Hormuz triggered a global energy crunch. Washington subsequently granted India a waiver allowing it to resume Russian oil purchases without immediate penalty. The new Senate-passed bill threatens to reopen that pressure point, layering a potential 100 percent tariff atop an already complex trade relationship that includes an active Section 301 forced-labor tariff and an ongoing excess-capacity investigation into Indian exports.

Dissent and What Comes Next

The bill was not without internal Republican opposition. Senator Rand Paul of Kentucky voted against the measure, warning that punitive tariffs on major trading partners such as India and China risked being self-defeating, describing the approach as the US "shooting itself in the foot." Eleven senators in total voted no.

Ukraine's government welcomed the Senate's action, calling it a significant step toward tightening economic pressure on Moscow. Attention now shifts to the House of Representatives, where the bill faces additional scrutiny, particularly over its tariff provisions, when lawmakers reconvene after Labor Day. Indian officials and trade negotiators are widely expected to closely track the House proceedings, given that both governments have reportedly been working toward finalizing a broader bilateral trade agreement in recent months — talks that a 100 percent tariff threat could once again complicate.

This report is based on verified reporting from Bloomberg, The Washington Post, CNN, RFE/RL, Outlook India, The Week, The Tribune, Business Today, and National Herald India as of August 9, 2026. Details of the bill remain subject to change as it proceeds through the House of Representatives.