New U.S. Tariff Powers: The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026

Companies importing goods into the U.S. from China or India could soon face additional tariffs on top of those they already pay.

On 16 September 2026, the U.S. House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (the “Act”) by a vote of 262–159. The bill has already passed the Senate and is expected to be signed into law by President Trump.

In addition to sanctions targeting Russia’s leadership, energy sector, defense industry, and “shadow fleet”, the Act provides the President with new tariff powers targeting countries that purchase Russian energy products or facilitate the evasion of sanctions against Russia.

How the tariff powers work

Within 30 days of enactment, the President is required to increase duties on all goods imported from countries which meet either of the following criteria:

1. Russian energy purchases: The country knowingly makes new purchases of Russian-origin crude oil or natural gas on or after 30 days following enactment and was among the five largest importers, by volume, of Russian-origin crude oil or natural gas during the 12 months preceding enactment.
2. Sanctions evasion: The country was among the top five countries facilitating Russian oil sanctions evasion during the 12-month period preceding enactment.

The first trigger is cumulative. A top five importer becomes covered only if it continues making qualifying purchases at least 30 days after enactment. The sanctions evasion trigger operates independently and may be based on activities of private persons or companies located, operating, or organised in the relevant country.

Section 113(f) of the Act states that any duty imposed shall be in addition to any other duty, fee, tax, exaction, or charge already applicable to the goods. This means that the new tariff will be imposed on top of existing measures, including section 301 tariffs and other levies.

Target countries, carve-out, and waiver mechanism

The Act does not name the countries to be covered, and the administration is left with wide discretion to determine its targets. China and India are widely expected to be among the main countries affected as they are known to be major purchasers of Russian energy.

The Act provides a carve-out for tariffs relating to Russian natural-gas purchases. Such tariffs shall not be imposed on the basis of Russian natural-gas purchases where both of the following conditions are met:

1. the country’s Russian natural-gas imports during the relevant 12-month period represented less than 15% of Russia’s total annual natural-gas exports during that period; and
2. the country has taken “significant steps” to reduce its imports of Russian-origin natural gas. The Act, however, does not define what constitutes “significant steps”.

The Act also provides for a presidential waiver mechanism. It permits the President to waive sanctions, restrictions or duties on a certification to Congress that the waiver is in the U.S. national interest.

Implications for businesses

The Act could significantly affect companies importing into the U.S., particularly those with supply chains connected to large buyers of Russian energy such as China and India. The Act confers on the President broad discretionary powers to impose tariffs, set tariff rates, and make subsequent adjustments. While the statutory framework is now in place, the impact of the new regime will depend largely on how the Trump administration chooses to exercise these tariff powers.

Importantly, any new tariffs could be implemented within a relatively short timeframe, leaving businesses with limited time to react. Companies should therefore remain vigilant, closely track these developments, and be prepared to mitigate any potential tariff exposure.