President Trump on Friday signed into law a sweeping Russia sanctions bill that authorizes tariffs of up to 100 percent on goods from the five largest importers of Russian oil and natural gas, giving the White House a new economic weapon aimed at Moscow and, indirectly, at its biggest customers, China and India. The House passed the measure 262 to 159 on Wednesday, and the Senate had cleared it in August by 86 to 11, after Ukrainian President Zelensky personally lobbied lawmakers for its passage.
The law requires the president, within 30 days of enactment, to impose duties of up to 100 percent on imports from the five largest buyers of Russian crude or gas by volume over the previous twelve months, subject to statutory exceptions. It also requires duties of up to 500 percent on goods imported directly from Russia. Lawmakers deliberately left the country list unnamed, but China and India, the two dominant purchasers of discounted Russian crude, are the obvious targets.
Sanctions provisions extend beyond tariffs. The act expands designations of Russian officials, banks, state-controlled entities, energy-sector actors, and the “shadow fleet” of tankers used to move Russian oil in violation of embargoes. It also extends the Iran Sanctions Act by five years, maintaining pressure on Tehran’s energy and weapons sectors while the Iran war grinds on. The president retains broad waiver authority on national-interest grounds, requiring a written certification to Congress and an explanatory report, which gives the administration wide discretion over how hard it actually enforces the measure.
First new tariff authority in decades
White House legislative director James Braid said the law marks the first time in nearly 40 years that Congress has granted new tariff powers to the executive branch. That matters legally. The Supreme Court has struck down many of the tariffs Trump imposed on his own authority since returning to office, ruling that he exceeded existing statutes. Duties imposed under the new law rest on explicit congressional authorization, which makes court challenges considerably harder.
The timing carries political and economic weight. Duties must be announced within 30 days, potentially days before the November midterm elections. US officials told India Today the timing gives Trump additional leverage ahead of his planned meeting with Chinese President Xi Jinping next week. For India, the prospect of 100 percent duties lands on top of the 50 percent tariffs already in place, and New Delhi has spent much of 2026 balancing cheap Russian crude against Washington’s displeasure. Indian refiners have already trimmed Russian Urals purchases this quarter in anticipation of exactly this kind of measure.
Support for the bill in Congress was broad but not universal. Some lawmakers from both parties opposed the breadth of tariff authority it hands the president, warning that a future administration could use the same powers for unrelated trade disputes. Senator Lindsey Graham, the bill’s most prominent advocate, had pushed versions of it for more than a year; he died on July 11 at 71, a day after meeting Zelensky in Kyiv, and did not live to see the signing.
Oil market implications
The law arrives with energy markets already on edge. Brent crude climbed past $100 a barrel earlier this month after an Iran-backed attack on Saudi Arabia’s East-West pipeline, and slipped back toward $100 on Friday as Riyadh resumed ship-to-ship crude transfers near Oman’s Sohar port and reported progress on pipeline repairs. Iran struck an oil tanker attempting to transit the Strait of Hormuz on Friday, according to its own announcement, keeping disruption risk priced in. More than a fifth of the world’s oil normally moves through that strait.
Economists warn the tariffs could push prices higher. Higher duties on Chinese and Indian goods would disrupt established oil flows and could push more discounted barrels onto the market or cut them off entirely, depending on how Moscow and its customers adapt. Either path feeds inflation at a delicate moment: the Federal Reserve raised rates 25 basis points on Wednesday, its first hike in three years, and the Bank of England held rates but warned UK inflation could exceed 4 percent early next year on energy costs. Analysts at BNP Paribas expect the BoE to deliver an “insurance hike” in November regardless.
Ukraine angle
Kyiv welcomed the signing. President Zelensky thanked Trump and the lawmakers who backed the bill, which he had lobbied for personally in Washington. The law’s tanker provisions matter practically: Ukraine’s sea drones have struck dozens of Russian shadow-fleet vessels this year, including the tankers Louise 1 and Banda in July, and the sanctions now give those same ships legal exposure in ports and insurance markets worldwide. Russia’s embassy in Washington called the law an attempt to push Russia out of the global energy market.
The battlefield backdrop has worsened for shipping even as diplomacy stirs. Russian forces struck a Ukrainian cargo ship and a tanker in the Black Sea and at a Ukrainian port on Saturday, Interfax reported, citing the defense ministry, and Reuters could not independently verify the claims. Moscow also said it was unaware of any US signals about a possible deal signing before the war ends, damping hopes that the sanctions law will be followed quickly by negotiations.
Enforcement details, including the importer list and any waivers, are expected within the 30-day window. Markets will watch two dates in particular: the tariff announcement deadline in mid-October, and the Trump-Xi meeting next week, which could produce either a deal that delays enforcement or a public confrontation over Chinese purchases of Russian crude.