WASHINGTON'S SANCTIONS HAMMER GOES ON HOLD: TRUMP'S OIL-TARIFF WAIVER EASES PRESSURE ON INDIA AND CHINA OVER RUSSIAN ENERGY
October 17, 2026
WASHINGTON, OCTOBER 17, 2026: US President Donald Trump has waived key Russia-related sanctions and tariffs on oil and gas purchases just days before the measures were due to take effect under a new American law, citing the national interests of the United States. The decision could spare major purchasers of Russian energy, including India and China, from steep tariffs intended to increase pressure on Moscow over its war against Ukraine.
In an executive order issued on Friday night, Trump invoked a waiver provision under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The legislation authorises the US president to impose tariffs of up to 100 per cent on goods imported from major purchasers of Russian crude oil and natural gas.
Trump said the waiver would remain in force until he or senior officials determined that further action was appropriate. He also certified to Congress that suspending the measures at this stage served the national interests of the United States.
The Graham Act was passed by Congress on September 16 and signed into law by Trump two days later. It was designed to intensify economic pressure on Russia over its invasion of Ukraine, which began in 2022. The law authorised tariffs of up to 100 per cent on goods from the five largest purchasers of Russian crude oil or gas, as well as countries that knowingly continued buying Russian energy after the specified period or facilitated sanctions evasion.
However, the legislation also empowered the president to waive sanctions, restrictions and duties if he determined that doing so served American national interests. Trump has now exercised that authority, delaying the application of the threatened measures.
The decision comes amid concerns that the tariffs could drive international oil prices higher and increase costs for American consumers ahead of the US midterm elections. Fuel prices have already faced upward pressure amid the US-Israeli war on Iran and disruptions to energy supplies from the Middle East.
India and China, two of the largest buyers of Russian oil, had expressed concern over the proposed restrictions. Beijing opposed what it described as the application of US jurisdiction beyond its proper limits, while New Delhi warned that additional tariffs could affect bilateral relations.
For India, the waiver is particularly significant because Russian crude has become an important source of supply amid disruptions to Middle Eastern oil flows. Indian refineries are largely configured to process medium-sour crude from the Middle East and Russia. Replacing those supplies with Venezuelan or American crude presents technical and commercial challenges because of differences in oil composition and refinery requirements.
The announcement also follows a deal involving Russian diesel supplies to the United States and international markets, an arrangement intended to help reduce fuel prices. The deal has attracted criticism from some American lawmakers, who argue that purchases of Russian energy could indirectly support Moscow’s war effort.
The timing of the waiver is also notable ahead of US Secretary of State Marco Rubio’s expected visit to India. External Affairs Minister S. Jaishankar had previously raised concerns about the Graham Act during a meeting with Rubio on the sidelines of the United Nations General Assembly in New York.
The decision, however, has drawn criticism in Washington. Democratic Representative Don Beyer accused Trump of yielding to Russian President Vladimir Putin, arguing that the waiver undermined congressional efforts to punish Russia for its invasion of Ukraine.
Trump’s move highlights the tension between Washington’s strategic objective of pressuring Moscow and its domestic concerns over energy prices, inflation and international trade. While the administration retains the legal authority to impose the threatened tariffs later, the waiver temporarily eases the prospect of a new trade confrontation with countries that continue to purchase Russian oil and gas.
For India and China, the decision offers potential relief from the immediate threat of punitive US tariffs. For Ukraine’s supporters, however, it raises renewed questions about the consistency of Washington’s economic pressure on Russia as the war continues.
