In a letter to Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, Senator Jeanne Shaheen of New Hampshire, the top Democrat on the Senate Foreign Relations Committee, and Republican Senator Roger Wicker of Mississippi, chairman of the Senate Armed Services Committee, warned that delayed action directly fuels Moscow’s war effort.
“Every day that passes without maximum economic pressure allows Moscow to sustain this military escalation,” wrote Shaheen and Wicker, urging the administration to deploy the newly-enacted statutory tools without delay.
The senators note that the bulk of the law’s provisions go into effect October 18, the end of the administration’s 30-day review period. For India, which has emerged as one of the biggest buyers of Russian oil, the legislation creates a fresh trade and energy dilemma.
But one crucial distinction needs to be made: the law does not automatically impose a 100% tariff on Indian goods entering the US.
The primary target of the congressional push is the financial infrastructure and supply lines funding the Kremlin. Lawmakers are demanding aggressive secondary measures to force international financial institutions to choose between the US financial system and Russia's war machine.
“Foreign banks must be forced to make a choice. They can either do business with the United States or finance Russia's war. They cannot do both,” the senators wrote.
Beyond cracking down on dual-use technologies and electronics feeding Russia’s military-industrial complex, lawmakers highlighted emerging technological threats, urging the White House to undermine Russia's “weaponisation of space” through its low Earth orbit satellite systems, which Ukrainian forces warn could facilitate real-time targeting during winter strikes.
While Capitol Hill presses for aggressive economic penalties against Moscow’s trade networks, the fallout from US tariff threats and Russian energy trade is already stalling negotiations with major global allies.
Speaking at the Munich Leaders Meeting, Union Finance Minister Nirmala Sitharaman delivered a stark assessment of bilateral trade discussions with Washington, confirming that progress has plateaued as both sides run out of room for concessions.
“The agreement negotiations are still ongoing, although we'd like to believe that both the sides have reached a plateau beyond which giving or taking might be very, very difficult. But maybe if there are rooms to operate from, both sides would do it,” Sitharaman said.
Central to the deadlock is a structural trade imbalance favoring India, alongside heightened friction over New Delhi’s continued purchases of Russian crude oil. Under new US authority, foreign nations buying significant volumes of Russian energy face potential tariff penalties of up to 100%.
While US officials maintain the authority is designed as leverage, the threat has severely narrowed the bargaining space for a broader economic pact.
Addressing the trade disparity, Sitharaman noted that Washington naturally seeks to narrow the gap, while emphasising that modern economic statecraft has shifted away from conventional tariff frameworks.
“But what is the predominant feature of the trade relations between India and the US? The trade balance is very much in our favor,” Sitharaman said. “Negotiation used to be the only platform through which countries could highlight the discrepancies, highlight the lop-sidedness and say, would we want to correct this? Tariff was an instrument of negotiation, and tariff had a certain framework within which you will apply it. Today framework is there, tariffs are going.”
Her comments align with statements from US Trade Representative Jamieson Greer following recent high-level meetings with Commerce and Industry Minister Piyush Goyal, where Greer acknowledged that while a bilateral deal is not imminent, negotiators have at least identified the core sticking points.