How will the U.S.’s Sanctioning Act affect India? | Explained

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President Donald Trump has signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act, 2026. File | Photo Credit: AP

U.S. President Donald Trump has signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act, 2026 , which could see tariffs of up to 100% being levied on imports from India if it continues to import oil from Russia. This Act, therefore, has significant implications for India with regard to its export ambitions and energy security. The Indian government’s concerns over the tariffs have so far gone unheeded.

The initial purpose of the Act — proposed by the late Senator Lindsey O. Graham and named after him — was to cut off financing for Russia so as to choke its funding of its war with Ukraine. To this end, the Act provides for sanctions to be levied on Russia’s top leadership and its biggest energy customers.

Recently, the ‘and Iran’ part of the title was added to the Act to convey that such measures are also aimed at Iran. The text was amended to say that sanctions on Iran would be levied for another five years until 2031.

For India, the most crucial aspect of the Act is what it says about countries that import Russian oil. Thirty days after its enactment, the Act allows the U.S. to impose a 100% tariff on goods originating in a country that meets one of two broad criteria. The first is a country that was among the five largest importers, by total volume, of crude oil or natural gas from Russia during the 12 months preceding the Act’s enactment, and that continues to import oil or gas from Russia after the 30-day period.

This is the criterion that will likely impact India. China and India are the top two importers of Russian crude oil. Russian crude oil has accounted for a rising share of India’s oil imports since February 2026, when the U.S. Supreme Court struck down Mr. Trump’s tariff regime, including the 25% punitive tariff he had imposed on India for its Russian oil imports.

According to the latest data, Russia accounted for more than 51% of India's crude oil imports in July 2026. Scaling this back drastically within 30 days, at a time when passage through the Strait of Hormuz is still constrained, will likely be impossible for India.

The second criterion for imposition of tariffs is whether a country was among the top five nations “facilitating Russian oil sanctions evasion during the 12 months preceding the date of the enactment of the Act”. India runs a much lower risk of qualifying for tariffs under this criterion, as Indian oil marketing companies have repeatedly said that all their purchases have been made without violating sanctions.

No. The law clearly states that an import tariff imposed under this Act “shall be in addition to any other duty” levied on any good. This includes tariffs imposed under Section 301 of the Trade Act of 1974, which allows the United States Trade Representative to investigate and retaliate against foreign trade practices that harm American commerce, and Section 232 of the Trade Expansion Act of 1962, which authorises the U.S.