New US Senate Bill Proposes Steep Tariffs on Buyers of Russian Oil
Washington, Wednesday, 15 July 2026.
Introduced to honor the late Senator Lindsey Graham, this bipartisan bill targets Russia’s war economy by authorizing up to 100% tariffs on major buyers of Russian oil and gas.
A Bipartisan Legacy and the Path to the Senate Floor
The introduction of the sweeping 60-plus page bill on Tuesday, July 14, 2026, represents a poignant milestone in Washington, serving as the legislative legacy of the late Senator Lindsey Graham (R-SC), who passed away on July 11, 2026 [1][2]. Just days prior, during the week of July 6, 2026, Graham and Senator Jeanne Shaheen (D-NH) engaged in high-level negotiations with Treasury Secretary Scott Bessent at the NATO summit to finalize the framework [1]. On July 10, 2026, Graham announced he had secured a White House agreement to advance the measure—a moment Senator Katie Britt (R-AL) recalled as Graham describing it as the most consequential achievement of his long and storied career [1][2].
Targeting Russia’s Energy Lifeline with Strategic Tariffs
At the heart of the legislation is an aggressive economic strategy to choke off Russia’s primary revenue streams. According to an unnamed Senate aide, the vast majority of Russia’s income used to fund its military operations in Ukraine is derived from oil and gas exports [1]. To combat this, the proposed bill empowers the executive branch to impose tariffs of up to 100% on major foreign buyers of Russian energy [2]. However, to avoid overextending American diplomatic relations, negotiators dramatically scaled back the bill’s initial scope from targeting 60 nations down to focusing on just 5 primary purchasers: China, India, Slovakia, Hungary, and Azerbaijan [1][2]. This represents a -91.667% reduction in the number of countries directly targeted by the primary tariff provisions.
Executive Authority and Geopolitical Friction
By granting the president the power to levy up to 100% tariffs on energy importers, the bill navigates a complex legal landscape [2]. Earlier in 2026, the Supreme Court ruled that President Donald Trump had exceeded his executive authority under the International Emergency Economic Powers Act regarding global and reciprocal tariffs [2]. Senator Blumenthal sought to ease concerns over potential executive overreach, emphasizing that the tariff authority in this bill is ‘targeted, narrowly limited’ and strictly confined to the five major energy buyers and entities facilitating trans-shipment evasions [2].