Donald Trump waives Russia oil tariffs under Graham Act, sparing India from proposed additional US duties

US President Donald Trump has waived tariffs and several sanctions provisions under a new law targeting buyers of Russian oil and gas sparing countries such as India and China from the immediate threat of additional duties of up to 100 per centThe executive order signed on October 16 and published by the White House implements the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 which Trump signed into law on September 18 The law provided for higher tariffs on goods from major buyers of Russian energy with the measures due to take effect from October 18Trump suspends tariffs before deadlineUnder the executive order goods from the five largest importers of Russian crude oil and natural gas could face an additional 100 per cent duty if those countries knowingly made new purchases of Russianorigin oil or gas on or after October 18The order also provided for a 100 per cent increase in duties on goods from the five leading facilitators of Russian oil sanctions evasion alongside a 500 per cent increase in duties on goods from RussiaHowever Section 4 of the order immediately waived the application of the duties provided for under Sections 112 and 113 of the Graham Act and the executive order itselfldquoI hereby waive the application of any duties provided for in sections 112 and 113 of the Graham Act or this orderrdquo Trump said in the orderThe decision means the proposed additional tariffs will not take effect for now although the administration retains the authority to reconsider the waiversMost sanctions provisions also waivedThe order also suspends several sanctions and restrictions provided for under the law including provisions covering foreign persons The waivers will remain in force until Trump or the Secretary of State in consultation with the Treasury Secretary and the US Trade Representative where appropriate determines that further action is necessaryThe order does not identify any country by name Trump said he had submitted the required written certification to Congress stating that the waivers were in the national interest of the United States along with a report explaining the basis for the decision The documents had not been made public at the time of the reportUS to monitor Russian oil purchasesThe decision does not remove all pressure on countries importing Russian energy The US Trade Representative in consultation with the Secretaries of State Treasury and Energy has been directed to monitor purchases of Russianorigin oil and gas and report circumstances that could warrant further action including a reconsideration of the waiversThe Trade Representative must also identify countries among the five leading facilitators of Russian oil sanctions evasionThe executive order further clarifies that existing US sanctions imposed on Russia under earlier executive orders remain unaffected by the waiversIndia among major buyers of Russian crudeIndia is among the largest importers of Russian crude oil and could have faced higher duties under the new law The waiver therefore provides immediate relief from the additional tariffs linked to purchases of Russian energyIn February Washington removed an additional 25 per cent duty on Indian goods linked to New Delhirsquos purchases of Russian oil as part of a trade framework that reduced the reciprocal tariff on Indian goods from 25 per cent to 18 per cent The two countries have been working towards finalising the first tranche of a bilateral trade agreementRubiorsquos India visit coincides with decisionThe waiver comes as US Secretary of State Marco Rubio begins a visit to the region Rubio is scheduled to travel to Samarkand Mumbai and Jamnagar between October 17 and 22 He is expected to meet External Affairs Minister S Jaishankar in Mumbai on October 20 and visit the Jamnagar refinery complexWith inputs from IANS