Trump's waiver of Graham law curbs comes as a relief to India, other Russian
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Trump’s waiver of Graham bill provisions could leave US navigating competing priorities: sustaining pressure on Moscow, containing domestic fuel costs and avoiding unnecessary trade disputes with major energy buyers. For India, the suspension offers immediate relief from a potentially damaging tariff escalation, but similar future threats have not disappeared.
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Loading...×US President Donald Trump’s decision to suspend key tariffs and sanctions targeting Russia is likely to come as a relief to major buyers of Russian energy, including India.Trump on October 17 invoked a waiver provision in the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, suspending the application of specified sanctions, restrictions and duties under the legislation.
The decision avoids an immediate confrontation with countries that continue to purchase Russian energy, particularly India, China and Turkey, even as Washington seeks to maintain pressure on Moscow over its invasion of Ukraine.
Trump's Russia waiver will also give his administration some room to add to its efforts to ease fuel prices at home.
The executive order said the waiver was in the national interest of the US. Trump has submitted the required certification to Congress, while retaining the authority to restore the measures at a later stage.
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Also read | Trump waives some sanctions, curbs on Russia
The move comes as US seeks to balances its Russia policy against fuel prices at home and wider trade relationships.
Trump’s plan to work with Russian President Putin to release Russian diesel supplies into global markets had created a potential conflict with the law’s punitive provisions.
Diesel prices in the US have been hovering at record highs ahead of the November 3 midterm elections. Allowing additional supplies to reach global markets could help ease price pressures. If the Graham law were to be enforced, it would have complicated that effort.
India clash avoided
For India, the waiver removes the immediate prospect of another major tariff confrontation with Washington over its purchases of Russian crude.It may be noted that India is now significantly reliant on (cheaper) Russian supplies, which have helped refiners in a big way to cut costs and supported domestic energy security.
As per a recent ET report that cited think thank GTRI, India imported $40.8 billion worth of Russian crude in FY2026, accounting for 30.3% of its total crude imports of $134.7 billion. Russia’s share rose to 51% of India's crude imports by July 2026.
The Graham Act had given Trump 30 days to impose tariffs of up to 100% on goods from the five largest purchasers of Russian crude. Its deadline was due to expire on October 18, placing India’s energy trade and its wider commercial relationship with the US under fresh scrutiny.
Such penalties could have affected Indian exporters selling into the American market, spreading the law's impact beyond the oil sector.
The decision comes amid continuing India-US talks to navigate differences over tariffs and bilateral trade negotiations.
ET had earlier reported that India was reviewing the implications of Trump's proposed Russian diesel purchases even as the threat of additional US tariffs hung over its own head. Now, Trump's waiver provides it with major breathing space. The waiver, however, does not end the possibility of future action.
China, Turkey also in focus
China, the largest buyer of Russian crude, also stands to benefit from the suspension of the tariff provisions. The legislation was designed to give the US president leverage over the principal purchasers of Russian energy, using access to the American market to influence their dealings with Moscow.Turkey, another significant buyer of Russian energy, is also among the countries that could have faced complications from the Graham law.
The waiver reduces the immediate risk of the US using tariffs to penalise major buyers, avoiding friction with important trading partners.
The waiver does not, however, amount to a permanent withdrawal of the tariff threat. The executive order leaves Trump admin with the power to reconsider the measures.
All eyes on US domestic politics now
The decision could cause friction in Congress, including from Republicans who supported the legislation as a means of increasing pressure on Putin. A bipartisan group of senators had urged Trump to abandon his arrangement with the Russian president and enforce the law.The legislation was championed by the late Senator Lindsey Graham, a South Carolina Republican and a longstanding supporter of Ukraine. Trump signed it into law last month, with its passage also serving as a tribute to Graham, who died in July.
Graham had argued that tougher sanctions were essential to bringing Putin to negotiations over ending Russia’s full-scale invasion of Ukraine, now in its fifth year.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
