Trump waives Russia oil sanctions a day before 100% tariffs on India were due

The decision puts on hold measures that could have imposed tariffs of up to 100% on goods from major buyers of Russian energy, including India and China. The order allows the waiver to remain in effect until Trump or his administration determines that further action is necessary.

In Short

• India and China opposed new tariffs due to energy security concerns
• Waiver aims to prevent higher oil prices before US midterm elections
• Critics say waiver undermines Ukraine and aids Russia's war funding

US President Donald Trump has waived sanctions, restrictions and duties under the Sanctioning Russia and Iran Act of 2026, citing US national interest. “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said in an executive order issued on Friday evening.

Trump said he had submitted a certification to Congress stating that the waiver was in the national interest of the United States. The Lindsey O. Graham Act empowers the US president to impose sweeping sanctions on Moscow and levy steep tariffs on major buyers of Russian oil and gas, including India and China.

Trump signed the Graham Act into law on September 18. It was designed to increase economic pressure on Moscow over its invasion of Ukraine, which began in February 2022, by targeting Russia’s energy sector and countries that continue to buy its oil and gas.

Under the measures outlined in the executive order, duties on goods from Russia could have increased by 500%. The order also provided for 100% tariffs on goods from the five largest importers of Russian crude oil and natural gas if they knowingly made new purchases of Russian-origin supplies on or after October 18. An additional 100% duty was envisaged for goods from the five biggest facilitators of Russian oil sanctions evasion. Trump has waived these duties.

India, one of the biggest buyers of Russian oil, had warned Washington that additional tariffs could affect bilateral ties. New Delhi has maintained that its energy purchases are guided by the need to ensure secure and affordable supplies. China had also opposed the proposed measures.

OIL PRICES, MIDTERMS AND CRITICISM

The waiver comes as the US faces higher energy costs amid the ongoing US-Israeli war on Iran. Imposing the new measures risked pushing oil prices higher and adding to pressure on American consumers ahead of the November midterm elections.

Trump has also faced criticism over a recent agreement allowing Russian diesel exports to resume in an effort to increase global supplies and ease fuel prices. Critics, including some US senators, argued that the arrangement could generate revenue for Moscow to fund its war in Ukraine.

US Representative Don Beyer criticised Trump's latest decision, accusing him of undermining Ukraine and weakening congressional efforts to punish Russia for its invasion.

RUBIO'S INDIA VISIT PUTS ENERGY COOPERATION IN FOCUS

The pressure over fuel prices in the US adds another dimension to Secretary of State Marco Rubio's upcoming visit to Mumbai and Jamnagar, home to the world's largest refinery. With diesel prices soaring ahead of the November midterm elections, Trump is also seeking to curb Ukrainian strikes on Russian oil refineries, bringing energy supplies and prices into sharper focus.

US Ambassador to India Sergio Gor has described Rubio's trip as “a little more business-focussed”. Speaking on Thursday, Gor said Rubio would hold several meetings in Mumbai before travelling to Jamnagar to meet officials from Reliance Industries, which operates the world's largest refining complex there.

Gor also pointed to Reliance's plans to open the first refinery in the US in 50 years. The visit comes as the Trump administration seeks to address domestic energy concerns while navigating its approach to Russian oil supplies and sanctions.

The executive order directs the US Trade Representative, in consultation with other senior officials, to monitor countries' purchases of Russian oil and gas and efforts to help Moscow evade sanctions. Officials must report developments to the president and flag circumstances that could warrant further action.

The waiver will remain in effect until Trump or the relevant administration officials determine that further action is appropriate. The order also clarifies that it does not affect sanctions imposed under earlier executive orders addressing Russia's activities.

- Ends
With inputs from agency