Trump signs law imposing up to 100% tariffs on Russian oil buyers

A new trade measure enacted by the United States authorizes the imposition of tariffs as high as 100 percent on entities that purchase Russian crude oil, specifically targeting the largest importers such as China and India. The legislation, passed by Congress and signed into law last week, expands the scope of existing sanctions by allowing the Treasury Department to levy punitive duties on any foreign buyer that acquires Russian petroleum products above a set threshold.

Under the law, the Treasury’s Office of Foreign Assets Control will assess the volume of Russian oil imported by each designated buyer and apply a tariff that can reach a full 100 percent of the transaction’s value. The measure is intended to curtail Russia’s ability to generate revenue from its energy exports, which have been a key source of funding for its military activities since the 2022 invasion of Ukraine. Officials anticipate that the tariffs will increase the cost of Russian oil for Asian markets, encouraging a shift toward alternative supplies and reinforcing the broader strategy of isolating Moscow financially. China and India, which together account for a significant share of global Russian oil purchases, have expressed concern over the potential impact on their energy security and trade balances, while Russian officials have warned of retaliatory steps.

The tariff regime is expected to take effect later this year, after a brief implementation period that allows affected parties to adjust their procurement strategies. Analysts note that the policy could reshape global oil flows by prompting buyers to seek non‑Russian sources, though it may also contribute to higher crude prices worldwide. The United States has framed the law as a tool to pressure Russia while limiting the ability of major economies to indirectly support its war effort.