US law provides for up to 100% tariffs on top Russian-oil buyers
US President Donald Trump on 18 September signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. It directs duties of up to 100% on all goods from the five largest importers of Russian crude or gas that keep buying after 30 days. China and India import the most Russian crude. The President may waive a duty.
Syllabus: GS3 · Indian Economy & Growth; Prelims · Current Affairs & IR; GS2 · Foreign Policies & the Diaspora
Why it matters
Take an Indian firm selling textiles or machinery in the United States, India's top export destination. India sent goods worth $87.31 billion there in 2025-26, about a fifth of its merchandise exports. If India stays among the five largest importers of Russian crude and keeps buying, all those goods could carry an extra duty of up to 100%, on top of existing duties such as the 10% Section 301 duty. Refiners face the other side: Russian crude was a record 50.83% of India's oil imports in July 2026, as supply disruptions in West Asia kept them buying. The rate can change: the US Trade Representative must revise it, within the 100% ceiling, when a country takes significant steps to raise or cut such purchases.
Prelims pointers
- Section 232, Trade Expansion Act of 1962: US duties on national-security grounds; used on steel, aluminium, automobiles and auto parts.
- Section 301, Trade Act of 1974: lets the US Trade Representative act against unfair foreign trade practices; used in July 2026 against 60 economies over imports of forced-labour goods.
- Section 122, Trade Act of 1974: a temporary import surcharge of up to 15% for up to 150 days to deal with balance-of-payments problems.
- Learning Resources v. Trump (2026): the US Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs.
- Article I, Section 8 of the US Constitution gives Congress the power to lay and collect taxes and duties.
- Executive Order 14329 (August 2025) put a 25% duty on Indian goods over Russian oil imports; Executive Order 14384 removed it from 7 February 2026.
- Duty ceilings in the 2026 Act: 500% on goods from Russia; 100% on goods from the five largest importers of Russian crude oil or natural gas.
- A duty under the 2026 Act is added to other US duties on the same goods, including those under Section 232 and Section 301.
Practise a UPSC-style question
Consider the following statements about the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 of the United States:
1. It provides for duties of up to 100% on all goods from the five largest importers of Russian crude or gas that keep buying.
2. Before waiving such a duty, the US President must certify in writing to the US Congress that the waiver serves national interests.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Show the answer
Answer: (c) Both 1 and 2
1 is correct: Section 113 directs a duty of up to 100% on all goods from a country that was among the five largest importers of Russian crude oil or natural gas and makes new purchases from 30 days after enactment; 100% is the ceiling, not a fixed rate. 2 is correct: under Section 115 the President may waive a duty after submitting to Congress a written certification that the waiver is in US national interests, with a report explaining the basis.
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