The Senator Lindsey O. Graham Sanctioning Russia Act of 2026 may soon be considered by Congress, but its punitive measures would only exacerbate the economic woes of everyday Americans. This legislation is the latest in a series of counterproductive attempts to hold Russia accountable for its war against Ukraine, which has now entered its fifth year.
The proposed bill would slap a 500 percent tariff on all U.S. trade with Russia and give the President unilateral authority to impose up to 100 percent tariffs on all goods imported from the top five largest importers of Russian crude oil or natural gas and countries that facilitate Russian oil sanctions evasion. This would likely result in the largest tax increase ever passed by a Republican Congress, costing the American people half a trillion dollars.
The list of penalized countries is extensive, encompassing nearly 40 percent of the world's total population. U.S. partners such as Turkey, Brazil, South Korea, and the European Union may soon find themselves on the list if they continue to import Russian oil and gas out of necessity. The tax will be collected primarily on American companies that import goods from these countries, which will then pass the cost onto consumers.
One way to understand how tariffs work is to look at who receives refunds when tariffs are removed. Companies such as Walmart, Costco, Home Depot, and General Motors have applied for and received billions of dollars in refunds after the Supreme Court struck down emergency tariffs. China, however, does not pay tariffs, as American importers and retailers do, and they pass the cost onto consumers.
The proposed legislation has been criticized for its potential to disrupt the U.S. economy, particularly if it prevents trade with key partners such as China and India. In 2025, the United States imported over $308 billion worth of goods from China and over $103 billion from India. Imposing a 100 percent tariff on all goods imported from these countries would be economically equivalent to shooting oneself in the foot.
Additionally, the bill imposes more futile sanctions on Russian officials and companies, which have done little to change Russia's behavior. The bill also bans U.S. citizens from conducting business and investment in Russia and gives the President authority to sanction any foreign person he determines is undermining Ukraine. This could lead to a diplomatic fallout with key allies such as Poland.
The proposed legislation also includes a mechanism for Congress to prevent a President from removing tariffs or sanctions, but no way for Congress itself to remove them. This could lead to a future President abusing this power and imposing long-lasting economic harm on the United States.
Congress should reject this misguided bill that will do nothing to bring peace to Ukraine, but rather raise prices for American consumers, further weaken the dollar, and destroy U.S. relations around the globe.
