US President Donald Trump has signed into law a Russia sanctions bill that gives his administration new powers to impose tariffs of up to 100% on countries buying Russian oil and gas. India and China, among the biggest buyers of Russian crude, could come under the new measures.

The legislation requires Trump to impose tariffs of up to 100% within 30 days on goods imported into the US from the five largest importers of Russian crude oil or gas. It also covers countries that knowingly make new purchases of Russian oil or gas after the law takes effect. The law further targets countries that rank among the top five nations helping Russia evade US sanctions.

The legislation does not name the countries that could face tariffs. It also does not clearly explain how the top-five lists will be calculated. This gives the Trump administration wide discretion in deciding which countries could be targeted.

The new law could expose Indian exports to steep US tariffs. The immediate impact, however, remains uncertain. Reuters reported that analysts expect Trump to consider the impact of such measures on consumer prices and energy costs ahead of the November midterm elections.

The bill, which Congress passed on Wednesday, targets Russia's energy and defence sectors. It also targets Russia's "shadow fleet" of tankers accused of helping Moscow evade sanctions. At the same time, Trump can waive tariffs or sanctions on national security grounds.

Trump agreed in July to move forward with the legislation after more than a year of delays. US officials had pushed for its passage to strengthen Trump's negotiating position ahead of his planned meeting with Chinese President Xi Jinping next week, congressional sources said.

White House legislative director James Braid said the legislation marks the first time in nearly 40 years that Congress has granted new tariff authorities to the executive branch.

The lack of clarity over the potential targets has raised concerns in India and other countries. Jeannette Chu, vice president of the National Foreign Trade Council, said assessments differed over which nations could face tariffs, with India, Brazil, Japan and countries in the European Union among those being discussed.

India has warned that new US tariffs could affect bilateral ties. China has opposed what it called "long-arm jurisdiction" lacking a basis in international law.

Critics say the legislation gives the president excessive discretion. Lawyer Laura Brank said the authority could be abused due to the broad powers granted to the president. However, the conservative Foundation for Defence of Democracies has argued that the bill provides sufficient criteria for identifying countries that could be targeted. It also said the legislation does not create a back door for imposing unrelated tariffs.

The timing of any tariffs could add economic pressure. Duties must be announced within 30 days, potentially bringing their implementation close to the November midterm elections. Higher tariffs on countries buying Russian energy could disrupt oil supplies and push energy prices higher, adding to inflation.

Since returning to office in January 2025, Trump has imposed tariffs of up to 50% on more than 80 countries. The Supreme Court has struck down many of those measures, ruling that Trump exceeded his authority. Legal challenges under the new law could face greater difficulty after Congress explicitly authorised the tariffs.

The law also allows Trump to waive tariffs or sanctions on national security grounds. Reuters quoted Ben Harris, a former senior Treasury Department official under former President Joe Biden, as saying, "The definitions are vague, and the president has kind of a get-out-of-jail-free card in the form of a waiver."