The U.S. Senate is advancing a bill that would impose tariffs of up to 100% on countries importing Russian oil and natural gas.
On July 14, U.S. Senators from both the Democratic and Republican parties unveiled an amendment to the sanctions bill led by the late Senator Lindsey Graham.
The amendment grants President Donald Trump the authority to impose tariffs of up to 100% on the top five countries purchasing Russian oil and natural gas. The final tariff rate will be determined by the U.S. Trade Representative (USTR) to effectively discourage purchases of Russian energy.
This amendment reduces the scope and level of tariffs compared to the original proposal introduced by Senators Graham and Richard Blumenthal last April, which allowed for tariffs of up to 500% on all third countries buying Russian energy.
Additionally, the amendment includes a provision allowing President Trump to waive sanctions if deemed in the national interest. Countries importing less than 15% of their natural gas from Russia and taking substantial steps to reduce imports may qualify for exemptions.
According to Reuters, the top five importers of Russian oil are China, India, Slovakia, Hungary, and Azerbaijan. Major importers of Russian natural gas include China, France, Japan, Hungary, and Belgium.
However, if exemptions are applied, countries like Japan, France, Hungary, and Belgium could avoid sanctions, making China and India the primary targets of this legislation.
The bill also includes measures to sanction so-called 'shadow fleets' transporting Russian oil without using Western shipping services, as well as financial institutions, including the Russian central bank, and key state-owned energy companies like Yamal LNG. Provisions targeting countries aiding in the evasion of Russian oil sanctions and Chinese companies supporting Russia's defense industry are also included.
The Senate hopes that passing this bill will pressure Russia's key revenue source, energy exports, and help bring an end to the ongoing war in Ukraine, which has lasted over four years.
Concerns Over U.S. Relations with China and India
However, Bloomberg notes that the actual imposition of tariffs could disrupt trade relations between the U.S. and China and India. Particularly, imposing high tariffs on China could reignite tensions over export controls on critical minerals, especially as the two nations are currently in a trade truce.
Even if the bill passes, tariffs would not be imposed immediately. The broad discretion granted to the president regarding the imposition and level of tariffs means actual enforcement will depend on President Trump's judgment.
No schedule has been set for a vote in the full Senate. However, with Trump’s support secured and calls for action on the bill increasing following Graham's death, the likelihood of Senate passage appears to be rising.
On the same day, President Trump stated, "This bill honors Lindsey. It is something he wanted more than anything, and it has a good chance of passing."
* This article has been translated by AI.
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