US President Donald Trump signed into law the Russia and Iran Sanctions Act, a new bill that aims to impose steep tariffs on Moscow, as well as on its primary energy purchasers like China and India.
The White House confirmed the signing in a statement: "On Friday, September 18, 2026, the President signed into law: H.R. 5334, the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,' which authorises and expands statutory sanctions, tariffs, and prohibitions on Russia and extends existing sanctions on Iran."
The act, which passed the House of Representatives on Wednesday, seeks to impose sanctions on Russia's leadership, its energy sector, and collaborators within Moscow's defence industry and its "shadow fleet" of oil tankers.
Sweeping new tariff powers for Trump
A key part of the new law authorises President Trump to place tariffs of up to 100 per cent on countries that purchase Russian oil and gas, with China and India being among the most prominent buyers. However, the legislation gives Trump wide discretion over its implementation. He has the power to decide which countries will face tariffs, the specific rates that will be imposed, and whether to waive any of the sanctions provisions.
The law is set to come into effect within 30 days of the President's signature. It requires him to impose duties of up to 100 per cent on goods imported from the top five countries that purchased Russian crude oil or natural gas by total volume in the 12 months before the act was passed.
There is an exemption clause for gas-related duties. A country can avoid these tariffs if its Russian gas imports made up less than 15 per cent of Russia's total exports during that period, and if it has taken "significant steps" to reduce those imports.
The legislation also specifically targets Russia's "shadow fleet" and other foreign individuals or entities involved in supporting Russian energy production or helping to evade sanctions. This includes vessel owners, operators, managers, insurers, and other parties engaged in these activities.
What critics say about the Russia sanctions bill
The new Russia sanctions bill has injected fresh uncertainty into a global economy already strained by nearly two years of trade disputes. Analysts suggest the immediate impact may be limited, given Trump's reluctance to take actions that could drive up consumer prices ahead of the November mid-term elections where control of Congress is at stake. Trump's popularity has declined since he launched a war on Iran in February, which has disrupted oil shipments from the Middle East.
However, critics are concerned that the legislation, which imposes tariffs on Russia's biggest trading partners, contains broad language that could spell trouble for other nations if they find themselves in Trump's cross-hairs in the future.
While China and India are major buyers of Russian oil, critics point out that the law provides US officials with enough leeway to name a wide range of targets, as it does not specify any country or outline how the top-five lists would be calculated.
"Given the discretionary authority that the president has, it is likely to be abused," said Laura Brank, a lawyer at Bryan Cave Leighton Paisner who focuses on cross-border transactions, was quoted as saying by Reuters.
Since returning to office in January 2025, Trump has imposed tariffs of up to 50 per cent on more than 80 countries, though many of these have been struck down by the Supreme Court, which ruled that he had exceeded his authority. Trump has cited several reasons for his actions, including disagreements with foreign leaders.
Challenging these latest tariffs in court could prove difficult, as the law specifically calls for the duties. Previous successful challenges argued that the Trump administration had misapplied laws from decades earlier.
The White House is yet to comment on concerns about the broader scope of the measure.
(With inputs from PTI, Reuters)
