Highlights:
US President Donald Trump has backed away, for now, from a tariff threat of up to 100 per cent targeting major purchasers of Russian oil and natural gas, a move with significant implications for India’s energy security and trade relations with Washington.
In an executive order signed Friday night, Trump waived specified duties and sanctions provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act, citing the national interest of the United States. The decision eases the immediate threat of additional tariffs on goods from countries targeted under the law, including major buyers of Russian energy such as India and China.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said in the order.
The move comes as India continues to rely on Russian crude amid disruptions to energy supplies from West Asia linked to the war involving Iran. It also coincides with US Secretary of State Marco Rubio’s visit to India, scheduled for October 17–22, placing energy security and bilateral trade tensions in focus.
What exactly has Trump waived?
The Graham Act, passed by Congress on September 16 and signed by Trump two days later, authorized the president to impose tariffs of up to 100% on goods imported from the five largest purchasers of Russian-origin crude oil or natural gas. It also provided for measures against countries facilitating the evasion of sanctions on Russia.
Trump’s executive order waives duties provided for under Sections 112 and 113 of the law. It does not cancel every US tariff imposed on the countries concerned, nor does it amount to a blanket removal of existing sanctions on Russia.
The waiver is also not necessarily permanent. The law allows the president to suspend specified measures in the national interest, subject to submitting a written certification and a report to Congress. The executive order states that Trump submitted the required documents.
The administration has also directed the US Trade Representative, working with senior officials, to monitor countries’ purchases of Russian oil and natural gas and possible sanctions evasion. Officials must report developments that could justify further action, including reconsideration of the waivers.
Why does the decision matter for India?
India has become a major buyer of Russian crude since Western sanctions and changes in global energy trade redirected oil flows following Russia’s invasion of Ukraine in 2022.
Russian supplies have helped Indian refiners secure crude at commercially attractive prices, although purchase volumes and sourcing decisions have varied with market conditions and government policy. The potential for additional US tariffs had raised concerns that India could face higher trade costs because of its energy imports.
The latest waiver offers India breathing room by removing the immediate threat posed by the specified tariffs under the Graham Act. However, it does not guarantee that India will avoid other US trade measures or future action under the law.
India’s ability to replace Russian crude quickly is also constrained by refinery requirements. During a meeting with Rubio on the sidelines of the United Nations General Assembly in New York last month, External Affairs Minister S. Jaishankar raised concerns about the implications of the legislation for India.
Jaishankar is understood to have explained that Indian refineries are largely configured to process medium-sour crude from West Asian countries and Russia. Venezuelan crude tends to be heavier, while US crude is generally lighter and may require blending to suit particular refinery configurations.
These differences matter because replacing one source with another is not simply a question of finding a willing seller. Refinery compatibility, shipping costs, prices and the availability of alternative supplies all affect the economics of switching.
With disruptions in West Asia adding pressure to energy markets, the waiver gives India more flexibility to manage its crude purchases without the immediate prospect of the specified additional tariffs.
A policy reprieve, not a permanent guarantee
The decision has drawn criticism in Washington. Democratic Senator Richard Blumenthal accused Trump of weakening pressure on Moscow.
“These waivers have nothing to do with our national security, & everything to do with sucking up to Vladimir Putin. I hope my Republican colleagues will join me in condemning this craven, cowardly action,” he wrote on X.
The order also follows a reported deal involving Russian diesel supplies to the United States and global markets, adding another dimension to Washington’s approach to Russian energy.
For India, the central takeaway is that the immediate tariff threat has eased, but uncertainty remains. The United States retains monitoring powers under the law, and the administration could revisit the waiver if it determines that circumstances warrant further action.
The decision may reduce near-term pressure on India’s trade relationship with Washington, but it does not resolve the wider tensions over Russian oil, sanctions policy and the security of global energy supplies.
