Trump backed bill could impose 100% tariffs on Russian energy buyers

A bipartisan group of US senators has reached an agreement on legislation that would allow President Donald Trump to impose tariffs on major buyers of Russian energy and countries helping Moscow evade sanctions.

According to a Bloomberg report, the Senate is expected to hold an initial procedural vote on the measure Tuesday, more than a year after the legislation was first introduced.

The bill was championed by the late Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. Graham secured support for a revised version from the Trump administration shortly before his death earlier this month.

Under the latest proposal, Trump could impose tariffs of up to 100% on the five largest buyers of Russian crude oil and natural gas, as well as countries identified as major facilitators of Russian energy sanctions evasion.

The authority was narrowed from an earlier proposal that would have imposed blanket tariffs of 500% on countries purchasing Russian energy. The updated bill limits the secondary tariff rate to 100% and allows the president to target no more than five countries.

The legislation would separately allow Trump to impose a tariff of up to 500% on Russian goods imported directly into the US.

China and India face the greatest potential exposure because both countries are among the largest purchasers of Russian crude. The bill could add further pressure to US trade relationships with Beijing and New Delhi.

The measure also targets Russian financial institutions, senior political and military officials, state controlled energy projects, and vessels used to transport Russian oil outside Western sanctions systems.

Iran provisions were added following a request from Trump. The legislation would extend the Iran Sanctions Act of 1996 through 2031, preserving US authority to penalize foreign companies conducting certain business with Iran.

The bill gives Trump broad discretion to waive or delay the penalties when he determines that doing so is in the US national interest. That flexibility has raised questions about whether the administration would use the new powers during periods of tight global energy supply.

Some Democratic lawmakers have warned that the legislation could provide Trump with a broader legal basis to impose tariffs on major US trading partners.

Senator Ron Wyden and Representative Richard Neal said the measure would give the president excessive unilateral tariff authority that could lead to higher prices and wider trade disruption.

The bill is expected to receive enough support to pass the Senate, where it has attracted more than 60 supporters. However, the House has already left Washington for its August recess, meaning the legislation would not become law until September at the earliest.

The Senate vote comes as Ukrainian President Volodymyr Zelenskyy visits Washington for meetings with Trump and lawmakers. Zelenskyy met Trump at the White House on Tuesday before traveling to Capitol Hill, where senators were preparing to discuss the sanctions legislation.