US President Donald Trump has signed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, drawing significant attention from global financial markets and raising fresh concerns over possible US tariffs on countries that continue to buy Russian energy.

Reports about the new law have focused heavily on Washington's ability to impose punitive tariffs of up to 100 per cent on countries purchasing Russian crude oil and natural gas. However, the actual statutory language presents a more detailed picture.

The key point is the difference between authorising tariffs and actually imposing them. While the new law gives the White House greater authority to use trade measures against major buyers of Russian energy, it does not automatically impose a 100 per cent tariff on Indian exports.

Trump Signs Russia and Iran Sanctions Act 2026

The legislation expands the US President's authority to take trade action against countries that purchase Russian energy. However, the law does not require Washington to immediately apply the maximum tariff rate after its enactment.

Instead, the legislation creates a framework that gives the administration considerable flexibility.

The law allows tariff rates to range from zero to as high as 100 per cent. It also provides a 30-day period after enactment before the President assesses whether countries have knowingly made new purchases of Russian energy.

Furthermore, the US Trade Representative (USTR) will review every 180 days which countries rank among the five biggest buyers of Russian crude oil and natural gas by volume.

Therefore, the law provides Washington with a mechanism to impose tariffs, but it does not mean that all countries buying Russian energy will immediately face a 100 per cent duty.

Trump Gets Broad Powers to Adjust or Waive Tariffs

The new legislation gives the President significant discretion over how and when the tariff provisions are applied. The White House can adjust the rates, delay their implementation or waive them under certain circumstances.

Importantly, the law contains a national-interest waiver. This provision allows the President to suspend tariff enforcement when doing so serves critical US economic interests or protects broader strategic relationships.

In addition, Washington can adjust tariff rates depending on whether a country takes “significant steps" to reduce, change or diversify its purchases of Russian energy.

This flexibility allows the administration to respond to changing economic and geopolitical conditions instead of applying one fixed tariff rate to every affected country.

Why 100% Tariffs Could Raise US Inflation Risks

Several economic and strategic factors could influence Washington's decision on whether to impose the highest possible tariff rate.

First, extremely high tariffs on major consumer imports could increase prices for American households. As a result, a blanket 100 per cent duty could add to inflationary pressures in the US.

Second, the United States and India are already engaged in sensitive trade negotiations aimed at reaching a comprehensive bilateral trade agreement. Against this backdrop, the new law could give Washington additional leverage during negotiations rather than automatically becoming a mechanism for imposing maximum tariffs on Indian goods.

Third, global energy markets could face disruptions if Indian refiners suddenly lose access to Russian crude. India plays a major role in refining crude oil and supplying refined petroleum products to international markets. A sharp reduction in its refining activity could therefore affect fuel supplies across parts of Europe and Asia.

India Emphasises Energy Security Amid US Tariff Threat

India's Ministry of External Affairs has maintained that New Delhi remains committed to protecting energy security for its 1.4 billion citizens.

The government has emphasised market-driven and diversified energy sourcing while also taking steps to protect India's broader economic interests.

Consequently, the impact of the US legislation on India will depend on how the Trump administration uses the authority granted by Congress, the future actions of major Russian energy buyers and the progress of ongoing US-India trade discussions.

Why Immediate 100% Tariffs on India Remain Uncertain

The immediate imposition of 100 per cent tariffs on Indian goods would have significant economic and strategic consequences for Washington as well as New Delhi.

For that reason, the legislation's tariff authority should not be interpreted as an automatic decision to impose the maximum rate. Instead, the law gives the Trump administration a broad policy tool that it can use depending on national interests, trade negotiations, energy-market conditions and the actions of countries purchasing Russian energy.

The coming weeks will therefore remain important as Washington assesses how to use the new authority and determines which countries, if any, could face additional tariff measures.