Key facts
- The Graham Sanctioning Russia and Iran Act of 2026 was signed by President Trump on September 18.
- The Act imposes 100% tariffs on goods imported into the U.S. from the top five global purchasers of Russian crude oil or natural gas.
- The top five countries are China, India, Turkey, Brazil, and Azerbaijan.
- A mandatory tariff of up to 500% can be applied to residual direct Russian imports.
- The Act blocks all transactions involving Russia’s ‘shadow fleet’ tankers.
- The Act codifies strict prohibitions on U.S. capital markets processing any funds connected to the Russian government.
President Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on September 18, a move designed to exert significant economic pressure on Russia and Iran. The act aims to force an end to the Russia-Ukraine War and prevent Iran from developing nuclear weapons.
The legislation allows for the imposition of 100% tariffs on goods imported into the U.S. from the top five global purchasers of Russian crude oil or natural gas, and the top five jurisdictions facilitating sanctions evasion. As of the act's signing, these countries are identified as China, India, Turkey, Brazil, and Azerbaijan. Additionally, the act enforces a mandatory tariff of up to 500% on any residual direct Russian imports, blocks all transactions involving Russia’s ‘shadow fleet’ tankers, and prohibits U.S. capital markets from processing funds connected to the Russian government.
During his September 22 address to the United Nations General Assembly, Trump explicitly linked the new tariff authorities to a renewed effort to freeze the conflict in Ukraine, stating his intention to use them if necessary to "stop the killing." He indicated that he is working closely with both Moscow and Kyiv to secure an agreement.
The act's secondary purpose is its potential to be expanded to target China for its support of regimes antagonistic to the U.S. and its allies, including Russia, Iran, and North Korea.
Trump's motivation for signing the act is seen as multi-faceted, including a desire to secure a legacy achievement by ending the Russia-Ukraine War, fulfilling a campaign promise, and addressing the U.S.'s potentially overstretched capacity to manage a two-theatre global conflict, with a third potential theatre involving China and Taiwan looming. The act provides leverage over both Russia and Ukraine, with Ukrainian President Volodymyr Zelenskyy welcoming its "peace through strength" approach, while understanding that Trump controls the execution of its restrictions.
The act also ties into Trump's long-standing goal of preventing Iran from acquiring nuclear weapons. Historically, significant changes in oil and gas prices have had a substantial impact on U.S. consumer spending and presidential election outcomes. Trump's daughter-in-law, Lara Trump, suggested that he recognizes the potential political cost of his stance on Iran but views preventing a nuclear-armed Iran as paramount, even if it means losing congressional majorities in the upcoming mid-term elections. The President's executive authority remains intact until January 2029, and he could declare a national state of emergency to reallocate funds if Congress were to cut military funding for actions against Iran.
The Graham Act's strategy also aims to sever the co-dependent military relationship between Russia and Iran, particularly concerning drone technology, missile sharing, and sanctions evasion. By forcing Russia into diplomatic negotiations to save its economy, Trump anticipates a reduction in Russian support for Tehran, such as advanced air defense systems or satellite intelligence. The act also strengthens existing Iran Sanctions Act provisions.