Trump waives trade penalties on Russian oil purchases, offers India temporary relief

Graham Sanctioning Russia and Iran Act of 2026, saying the waiver served US national interests. He also directed officials to monitor Russian energy purchases and flag developments that could warrant fresh action. The decision comes as the Trump administration faces pressure over Russian energy exports and efforts to bring down high fuel prices in the US. It has also drawn criticism from lawmakers who argue that easing restrictions on Russian oil could provide Moscow with additional revenue while its war against Ukraine continues.

Trump waives tariffs of up to 500% on Russian goods The executive order waives duties under Sections 112 and 113 of the Graham Act, along with duties set out in the order itself. These provisions cover tariffs on Russian goods and goods from certain countries linked to Russian oil and gas purchases or efforts to evade sanctions. The law allows the US to impose duties of up to 500% on goods imported from Russia.

It also provides for tariffs of up to 100% on goods from certain countries that meet specified conditions related to purchases of Russian-origin crude oil and natural gas or efforts to help Russia evade oil sanctions. Trump's order sets out these higher duties but makes them subject to exceptions under the law and the waivers included in the order. It then suspends the application of duties under Sections 112 and 113, as well as the duties specified in the order.

The order also waives certain sanctions and restrictions under Sections 102(a), 102(e), 103, 104, 105, 106, 107, 108, 109, 110, 111 and 117 of the Graham Act. It also covers provisions under Section 102(d) concerning foreign persons and restrictions imposed on them. These waivers will remain in place until Trump, or the Secretary of State where authorised under the order, decides that further action is appropriate.

US to monitor India's and other countries' Russian oil purchases Alongside the waivers, Trump has directed the US Trade Representative to monitor purchases of Russian-origin crude oil and natural gas by other countries. Officials will also track activities that could help buyers or other parties evade sanctions on Russian oil. The US Trade Representative will work with the secretaries of State, Treasury and Energy, as well as other senior officials considered necessary, to monitor developments and report to the President.

The order also sets out tariff provisions targeting countries that are among the five largest importers of Russian-origin crude oil and natural gas and knowingly make new purchases of these supplies on or after October 18, 2026. A separate provision targets the five largest facilitators of efforts to evade sanctions on Russian oil. However, the duties under these provisions remain subject to the exceptions and waivers specified in the order.

The decision to continue monitoring Russian energy purchases means countries buying Russian oil and gas could still face the risk of fresh trade penalties. The administration has kept the power to change its approach as it reviews energy purchases and possible efforts to get around sanctions. The decision to suspend the sanctions also follows Trump's announcement last week that he had reached an agreement with Putin to purchase diesel from Russia.