Trump signs Russia and Iran sanctions act, opening the door to tariffs on Russian-oil buyers

On Friday, September 18, 2026, the president signed into law H.R. 5334, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which authorises and expands statutory sanctions, tariffs and prohibitions on Russia and extends existing sanctions on Iran¹. The law targets Russia’s energy and defence sectors, President Vladimir Putin and other senior officials¹⁰.

Its reach extends past Russia itself. The bill authorises secondary sanctions against the five largest buyers of Russian crude oil and natural gas⁹. Secondary sanctions, unlike primary sanctions that target entities with direct US connections, penalise third parties for transactions that have no such link⁶. India and China are among the biggest buyers of Russian oil, which puts them at the centre of the potential tariff risk⁴. The act has been described as giving the president five-year tariff power over India⁶.

One date is already fixed. Washington sets the tariffs arising from the sanctions act on October 18, 2026⁵.

How steep, and on whom

The sources disagree on the ceiling, and the gap is wide. Several report that the new law gives the president power to impose tariffs of up to 100 per cent on goods from countries that continue buying Russian energy^4,11. Another states that under H.R. 5334 the government is set to impose tariffs of up to 500% on all goods imported from Russia². The two figures describe different targets, one aimed at third-country buyers and one at Russian goods directly, but the published accounts do not reconcile them.

The powers are also described as discretionary rather than automatic. Coverage frames the question as whether the president will detonate the tariff authority he now holds¹¹, and characterises the law as handing him sweeping new tariff powers³.

Why it matters to investors

Beijing has objected in terms that leave room for retaliation. China says it reserves the right to take all necessary measures, and its ministry stated that it opposes secondary sanctions against countries that do business with third parties⁷. A Commerce Ministry spokesperson said Beijing has consistently opposed unilateral sanctions and so-called secondary sanctions⁸.

There is also a warning about unintended consequences. In a worst-case scenario, one analyst cited in the coverage argued, Ukraine itself could suffer if the new tariffs cut off Russian oil flows³. For investors, the practical exposure sits with exporters and energy importers in the named buyer countries⁴, and the near-term marker is what Washington actually sets on October 18⁵.