The United States Senate has advanced a bipartisan bill that would impose new financial penalties on Russia and Iran while handing President Donald Trump broad authority to levy steep tariffs on countries that continue to buy Russian energy. Its fate in the House of Representatives remains uncertain.
The bill would allow Trump to impose tariffs as high as 500 per cent on Russian imports — which consist mostly of fertilisers — and up to 100 per cent on the five largest importers of Russian oil and gas. Those countries are currently identified as China, India, Slovakia, Hungary, and Azerbaijan, according to Time. Countries found to be helping Russia evade existing sanctions could also face tariffs of up to 100 per cent.
The measure also seeks to restore trade authorities that the Supreme Court stripped from the executive branch earlier this year, when it ruled against Trump's use of national security grounds to justify tariffs, the New York Times reported. If enacted, this would be the first time Congress has explicitly authorised tariffs as a geopolitical tool to punish countries financing another nation's war effort, Time reported.
The legislation carries a notable political weight beyond its policy scope. It was championed by Senator Lindsey Graham of South Carolina, who has since died, making its passage a symbolically charged act for supporters in both parties. Graham co-authored it with Senators Richard Blumenthal, Jeanne Shaheen, and Roger Wicker. The bill — formally known as the Sanctioning Russia Act — was first introduced in 2025 and originally included 500 per cent tariffs on countries purchasing Russian-origin petroleum and uranium, The Hill reported.
On 10 July, a bipartisan group of senators announced they had reached an agreement with the Trump administration to move the legislation forward. Reuters and CNN both reported the deal, though the precise terms of what was agreed between lawmakers and the White House have not been made public. Senate Majority Leader John Thune had previously said he would not bring the bill to the floor until the administration's backing was assured.
The White House reached a general understanding with the bill's sponsors but did not offer a formal, public endorsement. Trump retains considerable flexibility under the legislation. He may issue a waiver exempting a country or entity from sanctions, provided he notifies Congress and explains why he considers the exemption to be in the national interest. Whether he would use that authority to shield Russia itself from the bill's full force is unknown.
The bill does include off-ramps for targeted countries. Nations that take significant steps to reduce their purchases of Russian oil and gas could have their tariff rates cut or eliminated. Countries buying less than 15 per cent of Russia's natural gas exports and demonstrably reducing purchases would be exempt entirely, Time reported.
Not everyone in Congress views those provisions as sufficient protection. Senior Democrats warned that the bill's broader tariff authorities risk giving Trump a free hand to extend his wider trade agenda. Representative Richard Neal and Senator Ron Wyden were among those who said they could not support legislation amounting to a blank cheque for the president's tariff strategy, the Times reported. Last-minute amendments were made to reduce potential harm to American companies and allied trading partners, though the specific changes have not been detailed publicly.
The bill's path through the House remains the central obstacle. It is unclear what objections House Republicans may raise, or whether the administration will move to formally back the legislation ahead of a House vote. The full economic consequences of potential tariffs on China, India, and European Union member states such as Slovakia and Hungary have also not been assessed publicly.
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