Washington: US President Donald Trump has waived tariffs of up to 100% on goods imported from the five largest purchasers of Russian oil and natural gas, including India and China, under a law aimed at increasing economic pressure on Moscow.
In an executive order signed on Friday night, Trump invoked national-interest provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act to suspend specified tariffs, restrictions and sanctions-related measures. The decision follows a US-Russia agreement announced earlier this month concerning the supply of diesel to American and global markets.
The waiver provides temporary relief to India from the additional tariffs envisaged under the legislation. However, it does not remove other US tariffs that may apply to Indian imports under separate measures.
Trump said he had submitted the required certification to the US Congress explaining that the waiver was in the national interest of the United States.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said in the executive order.
What the Graham Act provides
The US Congress passed the Graham Act on September 16, and Trump signed it into law two days later, according to a report by Press Trust of India (PTI).
The legislation authorised the president to impose a range of measures against Russia and countries purchasing Russian-origin crude oil or natural gas. It also provided for tariffs of up to 100% on goods imported into the United States from the five largest buyers of Russian energy.
India and China were among the countries potentially affected by the provisions.
The legislation also sought to target countries facilitating the evasion of sanctions imposed on Russia. Its broader objective was to increase economic pressure on Moscow over the war in Ukraine by restricting the international trade and financial relationships that support its energy revenues.
Section 113 of the Act provides for tariffs of up to 100% on countries purchasing Russian-origin crude oil or natural gas, or helping Russia circumvent sanctions.
Sections 112 and 113 contain the provisions covered by Trump’s latest waiver. By suspending the specified duties, the president has set aside the additional tariff measures envisaged under these sections for the time being.
The decision does not amount to a blanket exemption from American trade restrictions. Existing tariffs imposed under other US laws or executive measures remain unaffected by the order.
Trump invokes national-interest provision
The executive order relies on Section 115(a) of the Graham Act, which allows the US president to waive specified sanctions, restrictions and duties when doing so is considered to be in the national interest.
The provision requires the president to submit a written certification and a report to Congress explaining the decision. Trump said the required documents had been submitted.
The waiver covers the new tariffs targeting the five largest purchasers of Russian-origin crude oil and natural gas, as well as related measures against countries facilitating the evasion of sanctions on Russia.
The order also establishes a monitoring mechanism to assess developments in international energy trade and the implementation of sanctions.
The US Trade Representative has been directed to consult senior administration officials and monitor countries’ purchases of Russian crude oil and natural gas, along with any assistance provided to circumvent restrictions targeting Moscow.
Officials have been instructed to inform the president of circumstances that could warrant further action, including a reassessment of the waivers.
This means the administration retains the option of reviewing its decision if it considers further measures necessary.
US diesel deal precedes tariff waiver
The decision came days after Washington announced an arrangement involving Russian diesel supplies to American and global markets.
On October 9, Trump announced a deal that could see Russia supply approximately five million tonnes of diesel to global energy markets over the following months. The US Treasury also issued a general licence allowing global buyers to purchase Russian diesel without sanctions until April 7, 2027.
The arrangement highlighted the administration’s focus on fuel availability and prices alongside its efforts to pressure Russia over the Ukraine conflict.
Diesel is a critical fuel for freight transport, agriculture and industrial activity. Changes in its price can affect transportation expenses, production costs and the wider cost of living.
The latest tariff waiver is consistent with a policy approach that allows certain Russian energy transactions while retaining the ability to impose restrictions in other circumstances.
The order does not, however, establish that all trade involving Russian energy or all sanctions targeting Russia have been suspended. Its scope is limited to the specified provisions and measures covered by the executive action.
Rubio’s India visit brings decision into focus
The waiver came as US Secretary of State Marco Rubio began a visit to India scheduled from October 17 to 22.
The Graham Act had been a subject of discussion between Indian and American officials. External Affairs Minister S. Jaishankar raised concerns about the legislation during a meeting with Rubio on the sidelines of the United Nations General Assembly in New York the previous month.
India’s concerns have centred partly on the technical requirements of its oil-refining industry and the availability of suitable crude grades from different suppliers.
Jaishankar is understood to have explained that Indian refineries were largely configured to process medium-sour crude supplied by West Asian countries and Russia. Venezuela supplies heavier-grade crude, while American crude is generally lighter and may need to be blended with other grades to meet the requirements of Indian refineries.
These differences matter because refineries are designed to process particular types of crude efficiently. Replacing an established source of supply with a different grade can require adjustments to blending, procurement and refinery operations.
The discussions also took place against the backdrop of disruptions to energy supplies from West Asia linked to the Iran war, which have increased the importance of securing reliable sources of crude oil.
Why the waiver matters for India
India is a major importer of crude oil, and the cost and availability of supplies have significant implications for its economy. Higher import costs can put pressure on the country’s trade balance, inflation and domestic fuel prices.
Russian crude has become an important component of India’s energy sourcing since Western restrictions reshaped global oil trade following Russia’s invasion of Ukraine.
The possibility of additional US tariffs had created uncertainty for Indian refiners and exporters, particularly because the proposed measures could have affected Indian goods entering the American market.
By waiving the specified duties, Trump has removed the immediate threat of those additional tariffs under the Graham Act. Indian businesses can therefore avoid the direct impact of the particular measures for as long as the waiver remains in effect.
Nevertheless, the decision does not guarantee that India will be exempt from future American trade action. The executive order specifically requires continued monitoring of Russian energy purchases and possible sanctions evasion, allowing the administration to reconsider the issue.
Senator criticises the decision
The waiver has also drawn criticism in the United States. Senator Richard Blumenthal objected to the decision in a post on X, arguing that it weakened the intended pressure on Russia.
“These waivers have nothing to do with our national security, & everything to do with sucking up to Vladimir Putin,” Blumenthal said, urging Republican colleagues to condemn the move.
His comments reflect disagreement over whether relaxing the specified measures serves American national interests or undermines the pressure intended by the legislation.
The administration’s decision comes amid competing considerations involving energy security, fuel prices, international trade and efforts to influence Russia’s conduct in the Ukraine war.
For India, the immediate effect is relief from the additional tariffs specified under the Graham Act, while other US trade measures remain in place. The longer-term implications will depend on how Washington applies the monitoring provisions, whether the waiver is maintained and how energy markets and diplomatic relations develop.