Trump Waives Russia-Related Sanctions Threatening 100% Tariffs on India
US President Donald Trump has waived key sanctions and tariff measures linked to Russian exports, offering significant relief to India and China just a day before the measures were due to take effect under legislation signed last month.
Trump said the decision was taken in the “national interest” of the United States. In an executive order issued late Friday, he announced a waiver of sanctions, restrictions and duties provided for under the Graham Act.
However, the order only suspends the implementation of the Russia-related tariffs. Trump retains the option to impose them at a later date.
Last month, Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, named after US Senator Lindsey Graham, a prominent supporter of Ukraine in Washington.
The legislation gave Trump 30 days to impose tariffs of up to 100 per cent on goods imported from the five largest buyers of Russian crude oil: China, India, Slovakia, Hungary and Azerbaijan.
It also provided for sanctions against several Russian entities and tariffs of up to 500 per cent on US imports of Russian energy products. The deadline for implementing the measures was due to expire on October 18.
The legislation aimed to reduce the financial resources supporting Russia’s war against Ukraine by targeting Russian officials, banks, energy interests and foreign entities allegedly supporting Moscow’s military operations.
It also authorised the US President to impose tariffs on countries trading with Russia to reduce their dependence on Russian oil and natural gas. The proposed measures included sanctions against Russian President Vladimir Putin and senior Russian government officials.
Had Trump imposed the proposed 100 per cent tariff on India, it could have significantly affected Indian exports to the United States.
According to the report, the additional tariff would have been imposed on top of existing US duties on Indian goods. The exact impact, however, would have depended on the final tariff rates and the products covered.
India-US trade relations came under strain last year after Trump imposed an additional 25 per cent tariff on Indian imports in connection with New Delhi’s purchases of Russian crude oil, alongside a 25 per cent reciprocal tariff.
The additional tariffs were removed in February 2026, while the reciprocal tariff was reduced to 18 per cent under a US-India trade framework.
The latest waiver temporarily removes the immediate threat of the proposed Russia-related tariffs, although the possibility of their future implementation remains.
After the US Congress passed the Russia sanctions legislation last month, India stated that it would take all necessary steps to protect its trade and economic interests.
The Ministry of External Affairs said India remained committed to ensuring energy security for its 1.4 billion people.
“India remains firmly committed to ensuring energy security for its 1.4 billion people,” the ministry said, adding that the country would continue to diversify its energy sources according to changing market conditions.
The ministry also noted that India’s oil trade with Russia had been discussed at high levels with US representatives in recent months.
New Delhi had conveyed its concerns about the potential impact of the issue on bilateral relations as well as the international energy market.
The executive order comes amid Trump’s recent engagement with Russian President Vladimir Putin and his public criticism of Ukrainian President Volodymyr Zelensky.
Last week, Trump announced a deal with Putin under which Russia would supply more than 300,000 tonnes of diesel to the United States immediately, followed by additional shipments in the coming months.
Zelensky criticised the agreement, describing it as “unworthy of our partners” and a “weak decision”. He also alleged that Russia was responding to the deal by continuing its attacks on Ukraine.
Trump, meanwhile, questioned Zelensky’s ability to negotiate an agreement to end the war and suggested that Ukraine needed a new leader.
“I suggest they get a new leader who can make a deal. For some reason, Zelensky never does,” Trump said.
Trump’s decision provides temporary relief to India and China from the immediate threat of steep US tariffs linked to Russian energy purchases. However, the waiver does not permanently eliminate the possibility of future trade restrictions.
For India, the development highlights the continuing challenge of balancing affordable energy imports, national energy security and trade relations with the United States.
The long-term impact will depend on whether the Trump administration maintains the suspension or decides to enforce the proposed measures in the future.
