Secretary of the Treasury Scott Bessent said the Department will continue to identify them, expose them, and cut them off from the US financial system.
An "extortion scheme" backed by Iran's Revolutionary Guard "forces commercial vessels to purchase mandatory maritime 'insurance' to transit the Strait," the US Treasury Department said in a statement.
While the bill specifically targets major buyers such as India and China, it leaves the decision on whether to impose tariffs and at what level to the president's discretion.
Rep Jim McGovern described India as a repeated perpetrator of transnational repression and urged Secretary of State Marco Rubio to review India's eligibility for US arms sales.
The proposal, unveiled on July 14, 2026, is a scaled-down version of the Sanctioning Russia Act, first introduced on April 1, 2025, which had proposed tariffs of up to 500%
