The new law authorizes secondary tariffs for key buyers of Russian energy
US President Donald Trump has signed into law a sweeping expansion of sanctions against Russia, giving Washington new powers to target Moscow as well as major buyers of Russian energy. The legislation authorizes tariffs of up to 100% on goods from certain countries purchasing Russian oil and gas, while imports from Russia could face duties of up to 500%.
The Lindsey O. Graham Sanctioning Russia and Iran Act also expands restrictions on Russian officials, financial institutions and other entities linked to the government. The White House has said the legislation is intended to increase economic pressure on Moscow over the Ukraine conflict while giving the president broad discretion over waivers and the eventual termination of sanctions.
RT examines the law’s key provisions, who could be affected and what the measures could mean for Russia’s trade partners.
The legislation was approved by the Senate 86-11 in August before passing the House 262-159 on Wednesday. It originated with Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal.
Unlike earlier sanctions focused largely on designated companies and individuals, the law broadens restrictions covering Russian government-linked officials, financial institutions and enterprises. It also targets vessels Washington says are used to circumvent restrictions on Russian oil exports.
One of its most consequential provisions gives the president authority to impose tariffs of up to 100% on goods from countries among the five largest buyers of Russian crude oil or natural gas. That is considerably below the 500% secondary tariff proposed in earlier versions of the legislation.
Who could be targeted?
China and India are among the countries most exposed to the secondary tariff provisions because of their large purchases of Russian crude.
Türkiye, a NATO member, is also a major importer of Russian energy, while EU countries continue to purchase Russian oil and gas despite the bloc’s efforts to phase out Russian supplies.
The picture is particularly significant for natural gas, where the EU remains a major market for Russia. China has also expanded its purchases, while Türkiye remains another important destination.
The law, however, does not make maximum tariffs automatic. It contains exemptions and gives the US president broad discretion over their application, meaning the eventual impact will depend heavily on how the administration implements it.
China and India have rejected US pressure over their energy trade with Russia and stressed that their economic and energy interests will guide their policies.
China’s Commerce Ministry has said Beijing reserves the right to take “all necessary measures” to protect its sovereignty, development interests and Chinese companies, while calling for dialogue with Washington.
India’s Foreign Ministry has reiterated New Delhi’s “firm commitment to ensuring energy security for its 1.4 billion people,” saying it would continue diversifying supplies according to market conditions.
Could US-Russia trade grind to a halt?
The legislation retains a 500% tariff on goods imported directly from Russia into the US.
In practice, however, the legislation contains exemptions and gives the president considerable waiver authority. The White House highlighted that discretion while backing the bill, including the president’s authority to lift sanctions following a peace agreement.
Washington has used similar exemptions before. A 2024 ban on Russian uranium imports included waivers allowing purchases to continue under certain circumstances. Moscow subsequently imposed temporary restrictions of its own on enriched uranium exports to the US, while allowing exceptions.
Moscow has criticized the legislation, with Kremlin spokesman Dmitry Peskov saying the new restrictions would not achieve their stated objectives and could complicate efforts to reach a settlement of the Ukraine conflict.
”Clearly, this cannot have a positive effect,” Peskov told reporters on Saturday.
The Russian Embassy in Washington has argued that the measures could also have consequences for the US economy, particularly amid tight global energy supplies. It warned that additional restrictions on Russian exports could put upward pressure on fuel prices and said escalating economic confrontation with Russia and China would be damaging to all sides.
