Massive blow for India? New US bill to grant Donald Trump power to levy heavy tariffs on Russian oil buyers

Washington DC: The US House of Representatives concluded the debate on Wednesday on legislation that would empower President Donald Trump to implement economic sanctions against Russia and levy heavy tariffs on its oil and gas trading partners, including India and China.

Steering the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, Republican Congressman Michael McCaul of Texas argued that adopting the measure would exert maximum financial leverage over Russian President Vladimir Putin to compel peace negotiations to halt the war in Ukraine.

Opposing the measure, Democratic Congressman Gregory Meeks of New York questioned the rationale of granting expansive tariff powers to the executive branch.

The chamber is anticipated to vote on the legislation later Wednesday.

“The President calls himself the 'Tariff Man'... why should we hand over this tariff man more authority,” Meeks said.

“It does not give what Ukraine needs at this moment. They need to have the munitions to protect themselves and continue to do what they are doing to preserve their country and democracy,” Meeks said.

Meeks offered proposed amendments intended to strike the entire provision authorising secondary sanctions against nations trading with Russia.

However, the House Rules Committee voted down the modification.

Additional amendments aimed at restricting sanctions strictly to 11 nations, including China, India, and Turkiye, and allocating USD 15 billion to assist Ukraine in acquiring military munitions were also defeated by the committee.

The Lindsey O Graham Sanctioning Russia and Iran Act, which passed the US Senate by an overwhelming 86-11 margin last month, targets Russia’s political leadership, its energy infrastructure, and the "shadow fleet" of maritime vessels used to bypass price caps on crude shipments.

The bill also authorises Trump to impose punitive tariffs on major buyers like India and China to curb reliance on Russian fossil fuels, alongside additional punitive measures against Iran.

McCaul contended that the tariff mechanisms offer Russia’s trading partners a clear choice to cease supporting Moscow's military campaign.

“Pursuant to the bill’s rule, only the top five importers of Russian oil will be tariffed. If a country falls off the top five list, the tariffs are removed. It incentivises the race to the bottom,” McCaul said.

“Putin believes he can keep financing this war indefinitely. We need to change that calculation and bleed his regime economically dry... If Putin is rewarded for invading a sovereign nation... his Army will move into Moldova, Georgia and to the Baltic states,” the Republican lawmaker added.

The bill overcame a procedural hurdle Tuesday, advancing to floor debate following a narrow 214-211 vote after two Democrats broke rank to support the Republican majority.

The legislation encountered sustained resistance on Capitol Hill following its introduction in April 2025, but received endorsement from Trump in July, shortly before the sudden death of Senator Lindsey Graham, the bill's chief sponsor, on July 11.

PTI