Trump invokes national interest to waive new Russia sanctions, tariffs; India gets relief from 100% tariff threat

India will not face additional tariffs under a new US law targeting countries that buy Russian energy. US President Donald Trump on Friday (Oct 16) signed an executive order waiving key sanctions and duties provided for under the legislation. The order invokes a provision of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 that allows the president to waive the measures in the national interest. The waiver comes just days before the up to 100% tariffs were due to take effect.

The law, signed in September, authorised tariffs of up to 100% on goods from major importers (including India) of Russian oil and gas and countries accused of facilitating sanctions evasion. The executive order states: “As described further in section 4 of this order, I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act.”

While the waiver removes the additional duties provided for under the act for now, it does not amount to a blanket exemption for India from all existing US tariffs or Russia-related sanctions imposed under other legal authorities. Moreover, these waivers are not permanent. As per the order, the waivers “shall remain in effect until such time as the President or the Secretary of State, in consultation with the Secretary of the Treasury and the Trade Representative, as appropriate, determine that further action is appropriate.”

Also read | India breaks silence on US Russia sanctions bill, 100% tariff threat: ‘Committed to energy security’ for 1.4 billion

Why the waiver matters for India

The Lindsey O. Graham Sanctioning Russia and Iran Act (SRIA) gave Trump the authority to impose duties of up to 100% on imports from countries that continued to buy Russian-origin oil or natural gas under specified conditions. The law had directed the administration, within 30 days of enactment (by 18 October), to raise duties by up to 100% on goods from the five largest importers of Russian-origin crude oil and natural gas if they made new purchases after that date, and by 500% on Russian goods. It also expanded sanctions targeting Russia.
India had faced the prospect of steep additional US tariffs over its purchases of discounted Russian crude oil. India, long one of the top buyers of discounted Russian crude, stood among the countries potentially exposed, alongside China and others. New Delhi has consistently framed its purchases around energy security for its 1.4 billion people.

Also read | Buying Russian oil could cost India dearly? MEA breaks silence on US 100% tariff bill

External Affairs Minister S. Jaishankar raised India’s “interests and concerns” over the legislation directly with US Secretary of State Marco Rubio on the sidelines of the UN General Assembly in late September. After the Act passed, the Ministry of External Affairs said India would continue “diversified sourcing… on the basis of evolving market dynamics” and protect its trade and economic interests.

Trump invokes national interest ahead of 2026 midterms

Under the legislation, the president can waive the measures after certifying to Congress that doing so serves US national interests and submitting a report explaining the decision. Trump's executive order says he submitted the required certification and report. It also directs US officials to monitor countries' purchases of Russian-origin oil and gas, as well as activities that could facilitate sanctions evasion, and report developments to the president.

Notably, the waiver comes ahead of the 2026 midterm elections, as the Trump administration scrambles to ease fuel prices, a key election issue ahead of the November 2026 midterms.

For India, the decision removes an immediate threat of steep new tariffs on its exports to the United States linked to continued Russian oil purchases, providing breathing room as bilateral trade talks continue and refiners weigh commercial factors. The announcement comes ahead of the visit of US Secretary of State Marco Rubio to India. This will be his 2nd visit to India this year, and he will be visiting Mumbai and Jamnagar during this visit.