100% Tariffs on the Horizon? How Washington’s New Sanctions Bill Puts India in the Economic Crossfire

100% Tariffs on the Horizon? How Washington’s New Sanctions Bill Puts India in the Economic Crossfire

WASHINGTON, September 18, 2026 – Capitol Hill just handed President Donald Trump a powerful new hammer to swing at countries buying Russian energy, and lawmakers aren’t hiding who they’re aiming for.

Late Wednesday night, the House passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a 262–159 vote. The bill was already passed in the Senate with an overwhelming majority, meaning that this bill is now on Trump’s desk ready for his signature. After the bill is signed, it will provide the White House with legal permission to impose extremely harsh taxes – as much as 100 percent – on goods produced by the top five consumers of Russia’s oil and natural gas.

Europe’s allies got special exemption in order to avoid the use of pipelines, but that won’t be the case with other countries.

This presents a difficult situation for India. In fact, the refiners of India had cut down on Russian oil purchases at the urging of the United States late last year. However, due to political instability in West Asia, shipping routes like the Strait of Hormuz were blocked, thus making international supplies come to a standstill. The United States responded with temporary waivers, which allowed countries such as India to import Russian oil without making international prices skyrocket. Congress is now threatening to punish New Delhi for availing an opportunity given by its own government.

The official response from New Delhi was swift, sharp, and unmistakably defensive.

“India remains firmly committed to ensuring energy security for its 1.4 billion people,” stated the Ministry of External Affairs on Thursday, making it clear that sourcing decisions won’t be dictated by foreign pressure. Officials warned that broad trade penalties wouldn’t just wreck bilateral relations—they’d send shockwaves straight through global energy markets.

However, the bill doesn’t mean that automatic tariffs will be imposed overnight. After all, the final decision will lie with the president, with a national interest waiver clause giving him the authority to impose and waive duties anytime he wishes to do so. Some observers consider this entire action as a strategic bluff on the part of lawmakers.

“These countries have a choice to make about whether they will continue to sustain Putin’s aggression,” fired back Representative Michael McCaul, arguing that cutting off cash flows to Moscow is the only way to end the conflict.

Those who were critical did not buy this argument. In a statement, Representative Gregory Meeks pointed out that giving the White House such a wide range of powers will boomerang onto regular citizens, posing the question, “How can we give more powers to the ‘tariff man’ to impose more inflationary tariffs?”

It is impossible to say whether the U.S. government will invoke these tariffs, but what is certain is that buying Russian oil will become way more dangerous.

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