Author: Nishtha Mehrotra | EQMint

Synopsis

• US President Donald Trump has waived key sanctions and tariff provisions under the Graham Act, easing the immediate threat of additional duties of up to 100% on India over Russian oil purchases.
• The decision, announced on 16 October 2026, was justified on grounds of US national interest.
• The move offers India temporary relief, but Washington retains the authority to reconsider the waiver.

US President Donald Trump has waived key Russia-linked sanctions and tariff provisions that threatened countries, including India, with additional duties of up to 100% for purchasing Russian oil and gas. The decision provides temporary relief to New Delhi ahead of the October 18 deadline for implementing the measures.

Trump issued an executive order on October 16 under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was signed into law in September. The legislation was designed to increase economic pressure on Moscow over its invasion of Ukraine and authorised steep tariffs on major buyers of Russian energy.

In the order, Trump said the waiver was in the national interest of the United States. The decision comes amid concerns about rising energy prices and follows a reported arrangement involving Russian diesel supplies intended to ease pressure on fuel markets.

India, a major importer of Russian crude, had warned that the proposed measures could affect bilateral relations with Washington. The waiver reduces the immediate risk of additional tariffs linked to the specified Russian energy purchases, potentially easing uncertainty for Indian exporters and policymakers.

However, the relief may not be permanent. The executive order states that the waivers will remain in effect until Trump or designated senior officials determine that further action is appropriate. The decision has also drawn criticism from US lawmakers who argue that it weakens the legislation’s intended pressure on Russia.

For India, the move offers breathing room in its trade relationship with the US, but the possibility of renewed action means uncertainty over Russian oil purchases and future tariff policy remains.

Source: https://shrts.in/0nh61p7upa

Disclaimer: This article is for information purposes only and is not investment advice.

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