Donald Trump Seeks Iran Tariff Powers as Russia Sanctions Bill Threatens India

The sanctions bill, authored by the late Senator Lindsey Graham, advanced on Tuesday and is aimed at increasing economic pressure on Moscow over its invasion of Ukraine. India, notably, is the second-largest importer of Russian crude oil after China.

Speaking to reporters in the Oval Office, Trump said lawmakers should modify the Russia sanctions bill to expand his authority beyond sanctions and allow him to impose tariffs on Iran.

"It shouldn't be necessary, to be honest. But if it's necessary I'd like them to add Iran as tariffs, not just as sanctions, I think that's important, that's what Lindsey wanted," he said.

Trump's proposal could slow the progress of the legislation as it moves to the House of Representatives.

If enacted, the legislation would allow Trump to impose tariffs of up to 100% on major buyers of Russian energy, including India. The bill would also leave it to the president's discretion to remove those tariffs.

Although many Democrats support stronger sanctions against Russia, some have raised concerns about granting Trump the authority to impose tariffs, warning that such powers could increase import costs. Those concerns could influence the bill's prospects as it proceeds through additional procedural stages in the Senate before moving to the House of Representatives, which is scheduled to reconvene in September.

Some Democrats have already indicated they will oppose the measure before it advances further in Congress.

The United States first penalised India over its purchases of Russian energy in August 2025, when Trump announced an additional 25% tariff, accusing New Delhi of "fueling Putin's war."

That decision increased the total tariff on Indian goods to 50%, matching the level imposed on China and Brazil. The move also strained relations between Washington and New Delhi, with trade negotiations coming to a standstill.

However, after the US-Iran war broke out in February, global energy markets came under pressure as the Strait of Hormuz was blocked, triggering an energy crisis that affected countries worldwide, including India.

In response, the United States granted a waiver on Russian oil, allowing India to resume its purchases.

Following the waiver, India's imports of Russian crude oil surged by 34% in June 2026 to a record high. According to data from the Centre for Research on Energy and Clean Air, the imports were worth €4.5 billion and accounted for about 36% of Russia's crude oil export revenue.

If the bill is approved and comes into force, it could create fresh challenges for India-US relations at a time when the two countries are negotiating a bilateral trade agreement expected to reduce the overall tariff on Indian exports to 18%.

At present, Indian goods entering the United States face a 15% tariff after the US Supreme Court struck down Trump's tariff increases. However, this is only a temporary rate and is scheduled to expire on July 24. The outcome of the Russia sanctions bill could therefore have significant implications for trade ties between India and the United States as negotiations continue.