Washington DC (Rajeev Sharma): India has avoided the immediate threat of additional US tariffs linked to its purchases of Russian oil after President Donald Trump waived several provisions of a new sanctions law targeting Moscow and countries trading in Russian energy.
The executive order, issued on October 16, invokes the national-interest provision of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The legislation gave the US administration powers to impose tariffs of up to 100% on goods from major purchasers of Russian-origin crude oil and natural gas, subject to the law’s conditions.
Trump said he had submitted a certification to Congress stating that the waiver was in the national interests of the United States. The decision came shortly before the law’s new tariff provisions were due to take effect.
The move offers immediate relief from the specified duties, although it does not repeal the legislation or remove every existing US restriction relating to Russia.
What Has Trump Waived Under The Graham Act?
The Graham Act was signed into law by Trump on September 18, 2026, following its passage through Congress earlier that month. It was designed to increase economic pressure on Russia and create additional consequences for countries purchasing Russian energy or helping Moscow evade sanctions.
Under the law, Washington could impose duties of up to 100% on goods from the five largest importers of Russian-origin oil and natural gas under specified conditions. Similar tariffs could apply to countries identified as major facilitators of Russian oil sanctions evasion.
In his latest order, Trump invoked Section 115, which allows the president to waive certain sanctions, restrictions and duties when the required national-interest certification and supporting report are submitted to Congress.
The order suspends the application of specified duties under Sections 112 and 113, alongside several other sanctions and restrictions covered by the legislation.
However, the waiver remains subject to review. The order states that the measures will stay waived until the president or designated officials determine that further action is appropriate.
Why Does The Decision Matter For India?
India has emerged as a major buyer of Russian crude oil, making the potential tariffs an important concern for its exporters and trade relationship with Washington.
The proposed duties were not limited to Russian oil shipments. They could have increased the cost of Indian goods entering the US market, potentially affecting exporters across multiple sectors.
The waiver removes the immediate threat of the specified additional duties under the Graham Act. It does not, however, amount to a blanket exemption for India from all US tariffs or Russia-related restrictions.
For Indian policymakers, the decision provides room to continue managing energy requirements without the immediate prospect of these particular penalties being activated.
Russian Oil Remains Important To India’s Energy Strategy
India relies heavily on imported crude oil to meet its domestic energy requirements. Russian supplies have become an important part of its sourcing mix, alongside oil from Middle Eastern producers and other countries.
The type of crude available also matters. Indian External Affairs Minister S Jaishankar reportedly raised concerns about the implications of the Graham Act during a meeting with US Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly in New York in September.
The discussions included the technical requirements of Indian refineries, many of which are configured to process medium-sour crude supplied by Russia and Middle Eastern producers. Other grades, including lighter US crude and heavier Venezuelan crude, may require blending or operational adjustments.
Disruptions to energy supplies linked to the conflict involving Iran and the wider Middle East have added further pressure to the global oil market. Maintaining reliable supplies at manageable prices remains a key consideration for India.
Trump’s Waiver Comes Amid Changing US Energy Calculations
The order follows a reported arrangement involving Russian diesel supplies for US and international markets. The administration has also faced debate over how to balance pressure on Moscow with concerns about energy prices and fuel availability.
The Graham Act was intended to strengthen Washington’s ability to penalise Russia and countries continuing to buy its energy. The latest waiver demonstrates that the law’s provisions can be withheld when the administration invokes the national-interest mechanism.
Trump’s order does not provide a detailed public explanation of every factor behind the decision. It formally identifies US national interest as the basis for the waiver.
What Happens Next For India-US Trade?
The immediate tariff threat under the specified provisions has been put on hold, but the broader trade relationship remains subject to future decisions by Washington.
The administration can reconsider the waiver, while other existing tariffs and restrictions remain governed by their own legal provisions. India’s energy purchases, negotiations with US officials and changes in global oil supply could all remain relevant to future discussions.
For now, the decision gives India temporary relief from the additional duties contemplated under the Graham Act. The central point is that Washington has waived the application of selected measures rather than scrapped the law itself.
Whether the waiver remains in place or is revised later will depend on subsequent decisions by the US administration.
