The United States recently enacted a sanctions law targeting Russia and Iran, but its economic impact extends far beyond those countries, affecting global trade routes and prices. Signed into law by President Donald Trump on September 18, 2026, the legislation authorizes tariffs of up to 100% on imports from the largest buyers of Russian energy and extends penalties against Iran through 2031 under the Iran Sanctions Act.
While aimed directly at Moscow and Tehran, the measures have broad consequences for third-party countries, companies, banks, and shipping firms involved in transactions linked to Russian or Iranian energy, finance, or shipping. Entities such as Bangladeshi banks, Chinese refineries, Indian oil buyers, Turkish traders, UAE shipping companies, and European financial institutions face significant compliance risks. Even without intent to violate US law, those facilitating sanctioned transactions may face penalties, creating a chilling effect across the global supply chain.
One of the most visible impacts is on energy markets. Russia and Iran remain key energy producers but are heavily sanctioned, resulting in cost and logistical challenges. Countries like Bangladesh that rely on affordable Russian crude have been unable to take advantage of discounted supplies due to compliance concerns and limited refining capacity. Instead, Russian crude is redirected to buyers who are willing to assume the risks, such as China and India, which have benefited from lower prices. Analysts note that at the height of sanctions, China saved billions daily by accessing discounted Russian oil. The redistribution of Russian energy supplies contributes to rising global crude oil prices, which also affects countries that do not directly trade with Russia or Iran by increasing costs for transportation, electricity, and manufactured goods.
Similar dynamics are evident in agriculture and fertilizer trade. Russia and Belarus are major suppliers of fertilizers, and sanctions-related financial and shipping restrictions have constrained the flow of these critical inputs, driving up costs for farmers and consumers worldwide. The International Monetary Fund has highlighted how such disruptions in commodity supply chains have amplified energy and food price shocks globally.
Bangladesh faces particular vulnerabilities beyond crude oil and fertilizers. Its nuclear power plant project at Rooppur, a 2,400-megawatt facility financed and constructed by Russia’s Rosatom, depends on reliable supply chains for nuclear fuel and associated financing. Although sanctions against Rosatom currently target leadership and specific subsidiaries, operational challenges and delays related to financial and logistical constraints have increased.
The broader trend reflects growing fragmentation and reorientation in global trade systems driven by unilateral sanctions and retaliatory tariffs. Disputes between the United States and Canada underscore how swiftly trade relationships can shift. Following the US announcement of a 50% tariff on $20 billion of Canadian goods, Canada imposed counter-tariffs and has accelerated efforts to diversify its export markets, securing deals with China and pursuing agreements with India and the European Union.
Against this background, emerging economies such as the BRICS nations have expressed concern over unilateral trade measures, describing them as distortions inconsistent with World Trade Organization rules. As enforcement of these sanctions continues, many analysts suggest that while sanctions and tariffs will not halt global trade, they are prompting rerouting and the emergence of alternative trade networks, potentially leading to a reconfigured international trade regime.