Trump Waives Russia-Linked Tariffs, Offering Relief To India Over Russian Oil Purchases

US President Donald Trump has waived key tariffs and sanctions targeting countries that buy Russian energy, offering India relief from punitive trade measures that could have imposed duties of up to 100 per cent on imports from major buyers of Russian crude oil and natural gas. The decision, announced in an executive order on October 16, came just days before the new penalties were due to take effect under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. Trump said the waiver was in the national interests of the United States.

The move is not an India-specific exemption. It suspends key tariff and sanctions provisions under the law, potentially benefiting other major purchasers of Russian energy, including China. The legislation was designed to increase economic pressure on Moscow over its invasion of Ukraine, with provisions allowing Washington to penalise countries that continued buying Russian oil and gas. The waiver remains in place until Trump or senior officials determine that further action is appropriate.

Tariff Threat Had Raised Concerns In New Delhi

The Graham Act, signed into law on September 18, authorised tariffs of up to 100 per cent on goods imported from the five largest buyers of Russian crude oil or natural gas if they made new purchases after the law's stipulated deadline. It also provided for measures against countries accused of facilitating Russian sanctions evasion. The penalties were scheduled to become applicable from October 18, raising concerns for economies that continue to rely on Russian energy supplies.

India, one of the largest buyers of Russian crude, had warned Washington that additional tariffs could affect bilateral relations. New Delhi has defended its energy purchases on the grounds of national interest, affordability and the need to secure supplies for a large and growing economy. India increased its purchases of discounted Russian oil after Russia launched its full-scale invasion of Ukraine in 2022, making energy trade a recurring source of friction with Washington.

Washington Cites National Interest As Policy Remains Uncertain

Under the executive order, the US Trade Representative, working with other government departments, will continue monitoring countries’ purchases of Russian oil and natural gas and report developments to the president. The administration has retained the ability to reconsider the waiver, leaving open the possibility of further action if it decides circumstances warrant it.

The decision also comes amid concerns over elevated energy prices and the potential impact of further restrictions on global oil markets. Reuters reported that analysts had warned the new tariffs could add to price pressures as American consumers faced higher fuel costs. The waiver therefore eases an immediate threat to countries such as India while leaving uncertainty over the longer-term direction of US policy towards Russian energy trade.