Full Breakdown
Trump Expands Tariff Authority Amid Russia Sanctions Bill and EU-Canada Trade Tensions
By Drooid · · How we work
Core Legislative Action: Russia Sanctions Bill with New Tariff Powers
The House approved the “Lindsey Graham Russia Sanctions Act” by a 262-159 vote and sent the measure to President Donald Trump for signature. The legislation, first introduced in April 2025 and championed by the late Sen. Lindsey Graham, authorizes the administration to levy tariffs of up to 100 percent on the five largest importers of Russian oil or natural gas, with an exemption for countries that import less than 15 percent of Russia’s gas and have taken “significant steps” to reduce those imports. U.S. Trade Representative Jamieson Greer will set the final tariff levels.
Parallel Trade Threats: EU and Canada
On September 17, 2026, President Trump warned that the United States would impose “very serious tariffs” on the European Union if it pursued Canada’s associate-membership bid, calling the proposal “laughable” and describing Canada as a “terrible trade partner.” He added that a “bad intention” by Europe would trigger “very heavy tariffs.”
Background & Context
The Graham-named bill emerged after more than a year of negotiations to combine sanctions on Russian officials, banks, and a shadow tanker fleet with new trade-policy tools. Earlier attempts to use the International Emergency Economic Powers Act (IEEPA) for tariffs were struck down by the Supreme Court, prompting the administration to rely on Section 301 and Section 338 of the Trade Act for the current authority. Simultaneously, the United States has escalated a trade dispute with Canada, imposing 50 percent tariffs on roughly $20 billion of Canadian goods while Canada has retaliated with duties on about $27.6 billion of U.S. exports.
Data & Statistics
- Up to 100 percent tariffs may be applied to countries purchasing Russian energy.
- Canada-related U.S. tariffs target $20 billion of imports; Canadian retaliatory duties affect $27.6 billion of U.S. goods.
- The National Taxpayers Union Foundation’s State Tariffs Tracker estimates that Pennsylvania has incurred an additional $11 billion in tariff costs since 2025, equivalent to $2,016 per household. California leads with $63 billion in added costs.
Official Statements & Responses
“These countries have a choice to make about whether they will continue to sustain Putin’s aggression,” — Rep. Michael McCaul, R-Texas.
“If we fail to pass this bill, there will be cheers in the Kremlin and tears in Kyiv,” — Rep. Steny Hoyer, D-Maryland.
Ukrainian President Volodymyr Zelenskyy told the House, “And this is a very important historical moment for the United States. The bill must be passed, voted on, and supported.”
Criticism & Opposition
Democratic leaders warned that the tariff authority could raise consumer prices and undermine long-term support for Ukraine. Arizona Sen. Ruben Gallego questioned the policy, stating, “This is just a tax, right?” and adding, “I think it’ll send a message to the White House that this type of tariff, especially with close friends, is just not something Americans want.”
Maine Governor Janet Mills noted that “the retaliatory tariffs… affect our state’s economy.”
What’s Next
The sanctions bill awaits the president’s signature. The administration has indicated that any decision on EU tariffs will hinge on its assessment of Canada’s EU associate-membership proposal. Legal challenges to the Section 301-based tariffs are scheduled for a September 23 webinar hosted by the Montreal Economic Institute.