What happened
President Trump on Wednesday demanded that lawmakers add tariff powers on Iran to a Russia sanctions bill, a move that could complicate the legislation's path in the House. The bill, named after the late Senator Lindsey Graham, passed the Senate overwhelmingly on Tuesday with a vote of 86 to 12.
Why it matters for the market
Speaking to reporters in the Oval Office, Trump said he wanted the bill to include tariffs on Iran, not just sanctions. 'I'd like them to add Iran as tariffs, not just as sanctions, I think that's important, that's what Lindsey wanted,' he stated.
The Senate-passed version already grants the president authority to impose tariffs of up to 100 percent on the top five purchasers of Russian energy, military equipment, or countries facilitating sanctions evasion, targeting China, India, and Southeast Asian nations. It also includes a 500 percent tariff on Russian imports to the U.S.
However, U.S. trade with Iran is minimal, with only $1.4 million worth of imports in 2025, compared to $3.8 billion from Russia. It remains unclear exactly which countries Trump envisions targeting with Iran-related tariff powers.
The House is expected to take up the Senate version under suspension of the rules, which prohibits amendments and requires a two-thirds majority for passage. Trump's new demand could prompt House Republicans to seek changes, potentially opening the bill to amendments and risking Democratic opposition.
What traders should watch
Senator Jeanne Shaheen, a leading co-sponsor, said she would work to convince House colleagues to pass the bill as is. If tariffs on Iran are not included, Trump could veto the legislation, forcing a two-thirds override vote in the Senate—a challenging prospect given the current political climate.
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