Trump Waives Graham Act Russia Tariffs, Sparing India From 100% Levy for Now

India's biggest near-term trade risk has been put on hold. President Donald Trump has waived the tariffs and sanctions that the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 told him to impose. He signed the executive order late on Friday in Washington, a day before the law's 30-day deadline ran out on October 18. The decision means India, one of the biggest buyers of Russian crude, does not face an immediate 100% tariff on its exports to the United States. That threat had dominated the India-US agenda all week (see our earlier coverage).

What the order actually does

The order does not cancel the measures. It formally imposes them and then suspends their implementation under the waiver clause written into the law. Trump has also certified to Congress that the waiver serves US national interests, which the statute requires before a president can use that power.

So the tariffs now sit in reserve. The White House can bring them into force later without going back to Congress, which gives Washington leverage it can use at any time.

The law, which Trump signed on September 18, contained three main tools. It allowed 100% tariffs on all goods from the five largest buyers of Russian crude. It set a 500% tariff on US imports of Russian energy products, and it added sanctions on a long list of Russian entities. All three are now suspended together.

Why Trump stepped back

The main reason is diesel prices. Last week Trump announced a plan with Russian President Vladimir Putin to release Russian diesel supplies into world markets, aimed at bringing down US diesel prices that are close to record highs. The midterm elections are on November 3. Imposing the Graham Act penalties would have worked directly against that plan.

The waiver also avoids an immediate fight with the three largest buyers of Russian energy: China, India and Turkey. Hitting all three with 100% tariffs during an oil shock would have disrupted trade with some of America's largest partners.

Pushback in Washington

Capitol Hill is unlikely to accept the move quietly. Earlier this week, a bipartisan group of senators, including several Republicans, signed a letter asking Trump to cancel the diesel arrangement with Moscow and enforce the law as written. Many lawmakers who voted for the bill saw it partly as a tribute to Graham, the South Carolina Republican and Ukraine supporter who wrote it before he died in July. Graham had long argued that tough secondary sanctions were the only way to bring Putin to the negotiating table.

The waiver weakens the bill's main threat. It also leaves its backers with few options, because the statute itself gives the president this escape route.

What it means for India

For New Delhi, the result is a reprieve rather than a final settlement. Indian refiners can keep buying Russian barrels for now without an automatic penalty on the country's exports. That matters while Brent crude trades above $100 a barrel and cheaper Russian supply cushions India's import bill.

The risk has not gone away, though. Because the tariffs are formally on the books, the White House keeps a lever it can use during the unfinished India-US trade talks or if its diesel deal with Moscow falls apart. Exporters in textiles, engineering goods and pharmaceuticals, who were exposed to a possible 100% duty, should treat the waiver as a pause.

The timing is also notable. US Secretary of State Marco Rubio starts an India visit this weekend that includes Mumbai and Jamnagar, home to Reliance Industries' refinery complex, with energy cooperation on the agenda. With the tariff deadline gone, those talks can focus on how quickly India reduces Russian purchases rather than on avoiding a penalty.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.