A waiver covering sanctions and tariff provisions tied to Russian exports was put in place by President Donald Trump, extending relief to both India and China roughly 24 hours before those restrictions — authorised under legislation enacted the previous month — were set to come into force. Trump described the move as serving the broader interests of the United States.
The waiver took effect through an executive order signed late on Friday, suspending the tariff measures connected to Russia under the Graham Act. The order's reach extends no further than those tariff provisions, leaving other elements of the legislation intact. The option to reimpose those measures remains available at a future point.
The legislation, formally titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 and bearing the name of Senator Lindsey Graham, who has advocated for Ukraine's position in Washington, was signed by Trump the previous month without public ceremony. The legislation gave Trump a 30-day period in which tariffs of up to 100 per cent could be applied to imports from whichever five countries were purchasing the largest volumes of Russian crude oil — a set that included China, India, Slovakia, Hungary, and Azerbaijan.
The measures also included penalties of as much as 500 per cent on Russian energy flowing into the United States, along with restrictions targeting a number of Russian entities. October 18 marked the point at which those provisions were set to expire. Sanctions under the measure were directed at Russian officials, financial institutions, energy holdings, and overseas entities said to be channelling support toward Moscow's armed operations in Ukraine, with the stated aim of cutting off funding streams tied to the conflict.
The legislation also granted the president authority to levy tariffs against nations that maintain trade ties with Russia, with the stated aim of reducing those countries' reliance on Russian-supplied oil and gas. Among the steps put forward were penalties targeting Vladimir Putin and a number of senior Russian government officials.
A levy set at the full 100 per cent rate that Trump had at one point raised as a possibility stood to reduce the volume of Indian exports entering the United States, and would have been applied on top of whatever duties the US already imposed on goods arriving from India. The extent to which the tariffs would have affected trade depended on which goods fell under their scope and where the rates were ultimately set.
Trade ties between India and the United States had faced pressure over the prior year when Washington applied a 25 per cent tariff on goods arriving from India, partly tied to New Delhi's procurement of Russian crude, alongside a separate 25 per cent reciprocal levy. Under the US-India trade framework, the additional tariffs were lifted in February 2026 and the reciprocal rate was brought down to 18 per cent.
The waiver now in place sets aside the Russia-linked tariff threat for the time being, though those measures have not been ruled out going forward. Following the passage of Russia sanctions legislation through the US Congress a month prior, India announced plans to pursue whatever measures were needed to safeguard its commercial and economic standing.
India's petroleum ministry outlined a pledge to keep energy supplies stable for a population of 1.4 billion, with officials noting that supply sources would be broadened in line with how market conditions evolve. The ministry's statement added that conversations between the ministry and US representatives about India's petroleum purchases from Russia had taken place at senior levels over the preceding months. Indian officials formally conveyed to their US counterparts concerns about how the matter could affect both the bilateral relationship and global energy markets.
The directive was issued against a backdrop of direct talks between Trump and Putin, alongside public statements from Trump expressing disapproval of Ukrainian President Volodymyr Zelensky's leadership. A deal disclosed by Trump outlined terms under which Russia would deliver an initial consignment of over 300,000 tonnes of diesel to the United States, with further shipments to follow in the months ahead.
Zelensky took issue with the agreement, characterising it as unworthy of allied partners and describing the terms reached as a weak outcome. He also pointed to attacks on Ukraine as evidence that Russia viewed the agreement as a provocation warranting a response. Trump cast doubt on Zelensky's capacity to reach a peace settlement, calling on Ukraine to install different leadership — someone capable, in his view, of bringing the conflict to a negotiated close. Trump's remarks did not specify what standard Zelensky was said to be falling short of.
The executive order extended a near-term reprieve to both India and China, shielding the two countries from the prospect of elevated US tariffs tied to their purchases of Russian energy. Trade restrictions remain an option that the waiver leaves open for the future. India's policymakers are managing competing pressures involving the affordability of energy imports, the stability of domestic supply chains, and the preservation of trade relationships with the United States. Whether those effects endure depends on whether the administration maintains the suspension or moves forward with putting the proposed measures into force.
