US President Donald Trump has approved a new sanctions measure targeting Russia, giving the administration wider powers to impose trade penalties on countries that continue to import Russian crude oil and other petroleum products. The move could bring major energy buyers, including India and China, under potential tariff pressure as Washington seeks to tighten economic restrictions on Moscow.
The legislation authorises the President to levy tariffs of up to 100 per cent on nations purchasing Russian energy supplies or supporting trade linked to Russia’s oil sector. The measure is part of broader US efforts to reduce Russia’s energy revenues and increase pressure on the Kremlin amid the continuing conflict in Ukraine.
India has emerged as one of the largest buyers of discounted Russian crude since the Russia-Ukraine conflict began in 2022. China, India and Turkey are among the top purchasers of Russian petroleum products and could come under scrutiny under the new tariff mechanism.
The move comes as the US attempts to limit Russia’s energy revenues, which Washington says help fund Moscow’s military operations. However, the impact of any future tariffs will depend on whether the Trump administration decides to use the powers granted under the law.
The legislation gives the President significant flexibility, including the ability to issue exemptions and waivers.
Under the new law, the US can impose:
Up to 500% tariff on Russian goods imported into the US
Up to 100% tariff on major buyers of Russian crude oil and natural gas
Penalties on countries or companies involved in helping Russia avoid sanctions
The tariff authority will remain in place for five years.
Energy analysts are watching the development closely as any restrictions on Russian oil buyers could affect global crude flows. Russia remains one of the world’s largest oil exporters, and India has relied heavily on Russian supplies due to competitive pricing.
Higher trade barriers on Russian oil could increase uncertainty in global energy markets and potentially influence crude prices, shipping routes and refining costs.
The Kremlin has criticised the legislation, calling it an unfriendly move. Russian officials said additional sanctions could complicate efforts to reach a settlement in Ukraine.
Meanwhile, the law also extends the Iran Sanctions Act of 1996 until 2031, allowing the US to continue imposing secondary sanctions on companies involved in certain business activities with Iran.
The US administration has not yet announced whether it will immediately impose tariffs under the new authority or target specific countries.