The proposal, revealed on July 14, 2026, represents a scaled-back iteration of the Sanctioning Russia Act, which was initially proposed on April 1, 2025, and aimed for tariffs as high as 500%.
Supporters are framing the updated measure as a continuation of Senator Lindsey Graham’s legislative legacy, following his passing on July 12. However, the Global Trade Research Institute (GTRI) has indicated that India should not be overly alarmed, remarking that “the original bill lingered in the Senate for over 15 months without progress, reflecting limited congressional backing for such extensive tariff powers,” and added that “the revised proposal could face a similar outcome.”
GTRI’s Founder Ajay Srivastava mentioned that the prospects for the bill are “further undermined by recent US Supreme Court decisions that invalidated both the reciprocal tariff system and Section 122 tariffs, highlighting the legal restrictions on imposing tariffs beyond established trade regulations.”
He asserted that even if the bill were to pass, its implementation would remain uncertain. Srivastava noted that when Washington imposed “additional tariffs on India in July 2025 for buying Russian oil, it refrained from similar measures against China, despite China’s significantly larger imports from Russia.”
He emphasized that “the new bill also spares 15 European nations that continue to purchase Russian gas, spotlighting the selective nature of the proposal.”
Highlighting China’s economic and strategic influence, he cautioned that “any efforts to enforce such tariffs would likely provoke retaliation, complicating enforcement against Beijing far more than the legislation indicates.”
He advocated for India to continue making energy policy decisions based on national interest and energy security, asserting that “Russian oil has played a role in controlling inflation and ensuring stable energy supplies.”
He concluded that while “the chances of this bill becoming law and being enforced are slim,” should it pass, “India should maintain its oil purchases from Russia, just as China does, rather than succumbing to external political pressures that could sway its energy policy.”
Also Read: US Russia sanctions bill eases threat of tariffs on China and India
