The Senate has taken an initial step toward advancing significant new sanctions legislation targeting Russia and countries that continue to purchase Russian energy products. On July 28, the Senate voted 86–12 to advance the legislation procedurally. This vote did not constitute final Senate passage, and the bill remains subject to additional debate, potential amendments, and further votes before it could move to the House of Representatives.

The latest publicly available version, titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, would impose extensive sanctions on Russian government officials, financial institutions, energy interests, oligarchs, and entities involved in Russia’s “shadow fleet.” It would also grant the President broad authority to impose substantial tariffs on imports from Russia and certain countries that purchase Russian oil or natural gas or facilitate sanctions evasion.

The latest substitute amendment also adds an Iran-related provision following public calls from President Trump to broaden the Russia sanctions package. On July 19, President Trump urged congressional Republicans to add Iran to the legislation. Several days earlier, he had said lawmakers were considering adding both Iran and potentially Hezbollah, including possible consequences for entities that conduct business with Hezbollah.

Proposed Tariff Authorities

The legislation contains two principal tariff provisions:

First, the bill would direct the President, within 30 days of enactment, to increase duties on all goods imported from Russia to a rate of up to 500 percent ad valorem. The additional tariff would apply to Russian energy products as well as other Russian-origin goods.

Second, the bill would authorize tariffs of more than zero and up to 100 percent on all goods imported from certain third countries. A country could be subject to these tariffs if it:

  • Continues making new purchases of Russian-origin crude oil or natural gas and ranks among the five largest importers of those products during the applicable 12-month period; or
  • Is among the five countries determined to be most responsible for facilitating the evasion of sanctions on Russian oil, including through financing, shipping, loading, or transactions involving Russia’s shadow fleet.

The bill does not identify the affected countries by name. Their inclusion would depend on current trade data and determinations made after enactment. Major purchasers of Russian energy, including China and India, are generally viewed as potential targets, but no country is automatically designated in the current legislative text.

The legislation would allow the U.S. Trade Representative to adjust a country’s tariff rate to any level above zero and up to 100 percent based on whether that country increases, decreases, or ceases its purchases of Russian energy. This structure is intended to give the Administration leverage to encourage countries to reduce their economic support for Russia.

Tariffs Would Stack with Existing Trade Measures

The proposed duties would be in addition to other applicable tariffs, taxes, and trade remedies. The text specifically references duties imposed under:

  • Section 301 of the Trade Act of 1974;
  • Section 232 of the Trade Expansion Act of 1962;
  • Section 122 and Section 201 of the Trade Act of 1974; and
  • Antidumping and countervailing duty laws.

As a result, products from a designated country could face the new Russia-related tariff on top of existing Section 301, Section 232, antidumping, countervailing, or other duties.

Product and Transaction Exceptions

The bill does not establish a traditional HTSUS-based product exclusion process. It does, however, provide several statutory exceptions.

The broadest commercial exception applies to transactions involving:

  • Agricultural commodities;
  • Food;
  • Medicine;
  • Medical devices;
  • Humanitarian assistance; and
  • Transactions necessary for or related to those activities.

Because these exceptions are written as transaction-based exemptions rather than a list of tariff classifications, their practical scope may depend heavily on future implementing regulations and agency guidance.

Other narrow exceptions include certain imports of low-enriched uranium and medical isotopes, non-Russian oil that merely transits Russian territory, authorized U.S. government and United Nations activities, existing Treasury general licenses, vessel and crew safety activities, and certain NASA or civilian space-launch activities. The bill would also establish a 270-day exception for qualifying wind-down and divestiture activities in Russia.

The President would separately have authority to waive any duty or sanctions provision under the bill after certifying to Congress that the waiver is in the national interests of the United States and providing a report explaining the basis for that determination.

The Road Ahead

The July 28 vote allowed the Senate to move forward with consideration of the legislation, but the bill has not yet passed Congress and has not become law. The Senate must complete debate, resolve potential amendments, and hold a final passage vote. The House would then need to consider and pass the same legislative text before the measure could be presented to the President.

Several provisions may remain the subject of negotiation, particularly the breadth of the President’s tariff authority, the countries that could be targeted, congressional oversight, waiver authority, and the scope of product and humanitarian exceptions. Some senators have already raised concerns that tariffs on all imports from major trading partners could increase costs for U.S. businesses and consumers.

If enacted in its current form, the bill would require the Administration to begin making sanctions and tariff determinations shortly after enactment. USTR, the Department of the Treasury, the Department of Commerce, and U.S. Customs and Border Protection would likely need to issue additional guidance explaining applicable countries, tariff rates, entry procedures, documentation requirements, exceptions, and waiver implementation.

Constitution Partners will continue monitoring the legislation and will provide updates as the Senate considers amendments and moves toward a potential final vote.