US tariff proposal on Russian oil imports

In mid‑July 2026 the U.S. Senate advanced a revised sanctions bill that would impose tariffs of up to 100 % on imports from the five largest purchasers of Russian oil and gas – India, China, Slovakia, Hungary and Azerbaijan – down from an earlier draft that floated rates as high as 500 %. The measure, named after the late Senator Lindsey Graham and backed by more than 60 lawmakers, also expands sanctions to Russian financial institutions, the “shadow fleet” of tankers and major state‑owned energy projects, and gives the president authority to waive duties for national‑interest reasons.

A follow‑up report three days later reiterated the 100 % cap, noting that the bill’s impact would fall mainly on India and China. Indian officials said the proposal would not become a sticking point in ongoing India‑U.S. trade talks. The United States signalled concessions to European allies on natural‑gas imports, prompting criticism of a double standard.

China’s foreign ministry on 16 July denounced the legislation as a breach of international law and lacking United Nations Security Council approval, calling it “economic coercion” and warning of “necessary measures” and possible retaliatory trade actions. Beijing highlighted its ability to use tariffs and export restrictions as leverage against U.S. firms and citizens.

India remains the world’s top importer of Russian crude, buying roughly 2.6 million barrels per day in July 2026 – about four times the volume sourced from Saudi Arabia – and says the tariffs will not derail the bilateral trade agreement under negotiation. European countries such as France, Greece and Slovakia have raised Russian gas imports, underscoring divergent responses to the sanctions regime.