US Eases Russia Sanctions Bill: Tariff Threat for India Cut From 500% to 100%

A bipartisan group of US senators has unveiled an updated version of a Russia sanctions bill originally championed by the late Senator Lindsey Graham. The new legislation, now titled the "Sanctioning Russia Act of 2026," seeks to increase economic pressure on Moscow to end its war in Ukraine but significantly softens the potential tariff penalties for major importers of Russian energy, including India and China.

The revised bill, which has received signals of support from the White House, aims to move forward as a bipartisan tribute to Senator Graham, who passed away suddenly last Saturday shortly after returning from a visit to Kyiv. Donald Trump Drops 20% Hormuz Transit Fee, Keeps US Naval Blockade on Iranian Ships.

Softening the Tariff Stance

The original proposal, introduced in 2025, had proposed a blanket 500 per cent tariff on countries continuing to trade with Russia’s energy sector. In contrast, the updated 2026 version lowers the potential punitive tariffs to a maximum of 100 per cent for the top five purchasers of Russian oil and natural gas. The legislation targets Russia’s energy sector, its shadow fleet of oil tankers, and its financial institutions, including the Central Bank of the Russian Federation. By imposing these financial penalties, lawmakers aim to incentivise top importers to shift toward alternate energy sources.

Strategic Exemptions and Presidential Flexibility

The new measure introduces more targeted criteria to address concerns that broad tariffs could destabilise global trade and harm US allies. Under the revised framework:

• Targeted Scope: Tariffs now apply more narrowly to the top five purchasers of Russian oil or natural gas. Currently, these include China, India, Slovakia, Hungary, and Azerbaijan for oil, and China, France, Belgium, Japan, and Hungary for natural gas.
• Natural Gas Exemptions: Countries whose natural gas purchases account for less than 15 per cent of Russia’s total natural gas exports - provided they are taking significant steps to reduce those imports - can be exempted from the new tariffs.
• Presidential Waiver: The bill grants President Donald Trump the flexibility to exempt certain entities from sanctions if he determines it is in the US national interest to do so and provides justification to Congress.

Legacy and Path to Passage

The legislation is being framed by supporters as a critical tool to support Ukraine and a fitting legacy for Senator Graham. Democratic Senator Richard Blumenthal, who co-authored the bill, described the effort as part of the late senator's career-defining work. "Passing this legislation right now would be a fitting tribute to Senator Graham's fierce support for Ukraine's freedom," Blumenthal said. As of July 14, the bill had garnered 26 co-sponsors, with Senate leaders expressing optimism regarding its chances for passage. While some House members are also moving to introduce a companion version of the legislation, the Senate is expected to prioritise a vote in the coming days. Jean Carroll Receives Over USD 5.6 Million From Donald Trump in S*xual Abuse, Defamation Case.

This legislative development follows a volatile period in US-India trade relations. In February 2026, the US formally lifted a 25 per cent punitive tariff on Indian imports that had been imposed in 2025 due to India’s Russian oil purchases, following commitments from New Delhi to curb those imports and strengthen defense cooperation with Washington. The new sanctions bill represents a renewed effort to manage these geopolitical pressures through a codified, bipartisan framework.

(The above story first appeared on LatestLY on Jul 15, 2026 07:18 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).