India faces 100% tariff as Russian sanctions bill makes headway
What's the story
The majority of the US Senate has voted to advance the Russian energy sanctions legislation, with 86-12 voting in favor of moving ahead with the bill. The legislation seeks to intensify economic pressure on Moscow over its invasion of Ukraine by giving the president authority to impose tariffs of up to 100% on nations that continue purchasing large volumes of Russian oil and gas. This includes major importers like India, China, Japan, and some European Union countries.
Trade implications
India has ramped up Russian oil imports
India has significantly ramped up its imports of discounted Russian crude since the Ukraine war started in 2022.
The proposed legislation, if passed, could complicate these trade relations and add another layer to ongoing discussions between New Delhi and Washington.
However, the bill is still far from becoming law, as it needs to pass both the Senate and the House of Representatives before reaching President Donald Trump's desk for approval.
Bill details
Legislation a tribute to late Senator Graham
The legislation, now called the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026," seeks to cut off funding to Russia's war effort and curb Iran's support for terrorism and advance its nuclear program.
The Senate vote is also seen as a tribute to the late Senator Graham, a strong supporter of Ukraine in Congress.
Ukrainian President Volodymyr Zelenskiy is in Washington for Graham's funeral and to meet US lawmakers and President Trump.
Tariff concerns
Concerns over broad tariff powers
While President Trump supports the legislation, some Democratic lawmakers have raised concerns over its broad tariff powers.
Critics argue it could affect US allies and increase costs for American consumers.
Representative Gregory Meeks slammed the proposal as a "massive backdoor authority" for Trump to impose more tariffs.
Supporters say the provisions are narrowly targeted at reducing Russia's energy revenues without triggering a broader trade conflict.
Support for Ukraine
Zelenskyy welcomes US Senate's action
As voting continued, Zelenskyy welcomed the US Senate's overwhelming procedural vote advancing a Russia sanctions bill, calling it "the first step toward peace."
He also met with executives of US defense company Lockheed Martin to discuss expanding defense-industrial cooperation between the two countries.
"Lockheed Martin is the company that produces ATACMS, HIMARS, F-16s, and missiles for Patriot systems," Zelenskyy said in a separate post on X.