New Russia Sanctions Bill Grants Trump Broad, Discretionary Tariff Powers

A new Russia sanctions bill passed by Congress this week gives President Donald Trump broad new powers to impose tariffs, a move that analysts say injects fresh uncertainty into the global economy. Critics warn the legislation's ambiguous language could be used to target countries well beyond the scope of penalizing Moscow.

What the Bill Allows

The legislation, which aims to cut off funding for Russia's war in Ukraine, requires the president to impose tariffs of up to 100% on all goods from certain countries. According to the bill's text, these targets include:

• The five largest importers of Russian crude oil or gas.
• Any country that knowingly made new purchases of Russian oil or gas 30 days after the law is enacted.
• The top five countries found to be helping Russia evade existing sanctions.

While major buyers of Russian oil like China and India are seen as potential targets, the bill does not name any specific countries or define how the lists would be calculated. This provides the administration with significant discretionary authority. "Given the discretionary authority that the president has, it is likely to be abused," said Laura Brank, a lawyer at Bryan Cave Leighton Paisner, in comments to Reuters.

A Historic Grant of Power

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The move marks a significant shift in trade policy control. "It is the first time in nearly forty years that Congress has granted new tariff authorities to the executive branch," White House legislative director James Braid said in a post on X. This specific authorization may make the tariffs more difficult to challenge in court, unlike previous duties that critics successfully argued were a misapplication of older laws.

However, the bill also includes a broad national security waiver, which would allow the president to avoid imposing the tariffs by notifying Congress. Ben Harris, a former senior Treasury Department official, told Reuters this provision acts as a "get-out-of-jail-free card," creating uncertainty about whether the administration will fully implement the measures against Russia and its partners.

Market Uncertainty and Political Risks

The timing of any new tariffs is politically sensitive, as they would have to be announced just days before the November midterm elections. Analysts noted that new duties could drive up consumer prices and energy costs at a critical time. "Given the state of the current energy markets, it certainly seems risky," said Ryan Majerus, a former senior U.S. official now with the law firm King & Spalding.

Trade groups and foreign governments have expressed concern over the lack of clarity. Jeannette Chu, vice president of the National Foreign Trade Council, noted that different entities have varying assessments of which countries could be hit. In response to the bill, China stated it has "consistently opposed long-arm jurisdiction," while India warned that new tariffs could damage bilateral ties.