US President Donald Trump has officially signed into law the Lindsey O. Graham Sanctioning Russia and Iran Act, 2026, creating major economic ripples globally. The legislation explicitly authorizes the imposition of up to 100% tariffs on imports from nations that continue to purchase Russian crude oil or gas. With Russia accounting for over 51% of India’s crude imports in July 2026, Indian trade prospects and domestic energy security are now under direct threat. These new tariffs are designed to be levied over and above existing duties, such as Section 301 and Section 232 tariffs, which would severely damage India’s export competitiveness. A 30-day window has been provided before the US determines non-compliance, alongside a 180-day review mechanism. Economists warn that if India succumbs to pressure and cuts Russian oil imports, domestic fuel prices will spike sharply amid high global oil prices and Strait of Hormuz constraints. Alternatively, sharing or bearing 100% tariffs could crush Indian exporters who are already operating on thin margins. While the Act provides a presidential national-interest waiver or an exit route via a Russia-Ukraine peace deal, navigating this crisis remains a complex challenge for Indian policymakers.