September 17, 2026 - China has pushed back against sweeping legislation passed by the U.S. Congress that could expose the largest purchasers of Russian oil and natural gas to tariffs of as much as 100%, potentially adding another source of tension to U.S.-China trade and global energy markets.

The U.S. House of Representatives approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a vote of 262-159, sending the measure to President Donald Trump for his signature. The Senate previously approved the legislation by an 86-11 vote in August.

The legislation is designed to increase economic pressure on Moscow by targeting Russia's energy and defense sectors, financial interests and networks used to evade existing sanctions. It also targets Russia's so-called "shadow fleet" of tankers used to transport energy commodities despite Western restrictions.

One of the bill's most consequential provisions gives the U.S. president authority to impose tariffs of up to 100% on goods imported from countries that rank among the largest purchasers of Russian crude oil and natural gas. The measure requires periodic determinations of the five largest importers of Russian crude and the five largest importers of Russian natural gas.

China and India are expected to be particularly exposed because of their extensive purchases of Russian energy.

Beijing responded strongly Thursday, rejecting U.S. attempts to interfere with its trade relationships.

Chinese Foreign Ministry spokesman Guo Jiakun said China conducts economic and trade cooperation with other countries "on the basis of equality and mutual benefit" and said that cooperation should not be disrupted or subjected to coercion by third parties.

Guo also reiterated China's opposition to what Beijing describes as "long-arm jurisdiction" that lacks a basis in international law or authorization from the United Nations Security Council.

The dispute comes as China's importance to Russia's energy sector continues to grow.

According to the Centre for Research on Energy and Clean Air, China was the world's largest buyer of Russian fossil fuels in August, accounting for approximately 51%, or €8.4 billion, of Russia's fossil-fuel export revenues from its five largest importing markets.

Crude oil represented about €5.8 billion of China's purchases during the month, followed by pipeline gas, LNG, coal and oil products. Chinese imports of Russian seaborne crude increased 16% from July and were 62% higher than in August 2025. Russia's share of China's seaborne crude imports reached 23%, compared with 9% a year earlier.

China Also a Major Buyer of Russian Coal

While much of the attention surrounding the U.S. legislation has focused on oil and natural gas, China is also by far the largest international buyer of Russian coal.

CREA estimates that from December 2022 through the end of August 2026, China purchased 37% of Russia's coal exports. India accounted for another 19%, followed by Türkiye at 15%, South Korea at 12% and Vietnam at 4%.

In August alone, China's purchases of Russian coal were valued at approximately €682 million, according to CREA.

The figures illustrate the increasingly important role China has played in absorbing Russian energy exports as Moscow has redirected trade following sanctions imposed after Russia's 2022 invasion of Ukraine.

China's broader energy relationship with Russia has also been expanding. Russian LNG imports into China increased 24.9% year over year during the first seven months of 2026 to 4.23 million metric tons, even as China's overall LNG imports declined 4.6%, according to Chinese customs data cited by S&P Global Energy.

Energy and natural resources dominate the broader China-Russia trading relationship. Since February 2022, mineral fuels—primarily crude oil—have represented an average of roughly 70% of the value of Chinese imports from Russia, according to the Mercator Institute for China Studies.

Tariffs Would Not Necessarily Be Automatic

Passage of the legislation does not mean that a 100% tariff would immediately be imposed on Chinese or Indian goods.

Rather, the legislation establishes authority and procedures for the administration to impose duties on major purchasers of Russian energy. The president also has flexibility over the tariff rate and certain determinations under the legislation.

That discretion has become a point of debate in Washington.

Supporters argue that targeting countries purchasing Russian energy would attack a major source of revenue for Moscow and increase economic pressure on Russia.

Critics have raised concerns that secondary tariffs could increase costs for American consumers, disrupt trade with major U.S. partners and give the president unusually broad tariff authority. House Foreign Affairs Committee Ranking Member Gregory Meeks was among lawmakers who opposed the legislation on those grounds.

India has also warned Washington about the possible consequences. New Delhi said it had previously raised the issue with U.S. officials and would take measures necessary to protect its trade and economic interests. Indian officials have also warned of potential effects on bilateral relations and international energy markets.

Russia has criticized the legislation as well. Kremlin spokesman Dmitry Peskov described the measures as unfriendly and said additional sanctions could complicate efforts toward a negotiated settlement of the war in Ukraine.

For international coal and energy markets, attention now turns to whether President Trump signs the legislation and, if it becomes law, how aggressively the administration uses its new tariff authority.

The stakes are particularly significant for China. Its position as Russia's largest overall fossil-fuel customer—and largest foreign buyer of Russian coal—means any attempt by Washington to reduce Russian energy purchases could have consequences extending well beyond the oil market.