A sanctions bill championed by Senator Lindsey Graham, R-S.C., aimed at punishing Russia for its financing of war efforts, includes provisions that could allow the president to impose tariffs of up to 100% on major purchasers of Russian oil. If passed, this would mark the first time Congress has explicitly authorized the use of tariffs as a geopolitical weapon.
The legislation's focus on tariffs has raised concerns that a future administration, potentially led by former President Donald Trump, might leverage these new authorities in broader trade disputes. However, Senator Richard Blumenthal, D-Conn., Graham's Democratic partner on the bill, stated that the tariffs are narrowly targeted. He emphasized that the bill imposes broad sanctions on significant portions of the Russian economy.
Blumenthal addressed concerns about potential misuse of the tariff powers by the president, asserting that the authority is confined to specific scenarios. These include the five largest purchasers of Russian oil, with a 15% exemption, and entities evading sanctions by facilitating trans-shipments or other avoidance tactics. He argued that the bill is narrowly tailored and does not grant significantly more tariff power than the president might already attempt to use, referencing current threats of tariffs.
The bill is intended to penalize countries that finance war efforts, with the aim of avoiding penalties for European allies supporting Ukraine. The tariffs are designed to be a targeted response rather than a broad economic measure against allies.