Russian oil tariffs waived by Trump, easing threat to India and China

Russian oil tariffs that could have affected India and China were waived by US President Donald Trump through an executive order issued in the United States on Friday, October 16. The order suspended sanctions, restrictions and duties under the Sanctioning Russia and Iran Act of 2026 on national-interest grounds.

Trump said he had certified that justification to Congress. The legislation, also known as the Graham Act, had been signed on September 18 to increase economic pressure on Moscow over the Ukraine war.

The measures allowed duties of up to 500% on Russian goods. They also envisaged 100% tariffs on goods from the five largest buyers of Russian crude and natural gas if those countries knowingly made new purchases from October 18.

Monitoring continues despite waiver

The Russian oil tariffs waiver also covers proposed duties targeting major facilitators of sanctions evasion. It does not remove measures imposed through earlier executive orders concerning Russia.

The US Trade Representative and other senior officials must continue tracking Russian energy purchases and activity that helps Moscow evade sanctions. They are required to alert the president to developments that might justify further action.

The relief will continue until Trump or relevant administration officials decide additional action is appropriate. India had warned that further tariffs could harm bilateral relations and maintained that its energy buying reflected the need for affordable, secure supplies.

The decision follows an October 9 arrangement permitting Russian diesel supplies to return to global markets. A US Treasury licence allows purchases of Russian diesel until April 7, 2027, according to reports.

US energy costs and the approaching November midterm elections form the backdrop to the decision. Critics, including US Representative Don Beyer, argued that the waiver weakened efforts to penalise Moscow over its invasion of Ukraine.

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