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India is temporarily shielded from steep additional U.S. tariffs and trade restrictions that were scheduled to bite under the new legislation just ahead of an impending deadline
US President Donald Trump with PM Modi. (Photo: Reuters/File)
US President Donald Trump has temporarily waived key provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act (Graham Act), pausing threatened punitive tariffs of up to 100% on countries, including India and China, that purchase Russian oil and gas. U.S. Secretary of State Marco Rubio explained that the administration is taking 60 days to study the broader economic and geopolitical impacts before deciding on its next steps.
What does this mean for New Delhi?
THE WAIVER
Passed by a overwhelming bipartisan majority in September 2026, the Graham Act authorises an additional 100% tariff on goods from the five largest importers of Russian crude oil and natural gas if they knowingly make new purchases from 18 October 2026.
While the administration has framed this as a 60-day review period, the signed executive order states that the waivers will remain in effect until the President or the Secretary of State determines that further action is warranted, setting no explicit automatic expiration date.
THE RATIONALE
The waiver safeguards international energy markets amidst multiple compounding global crises, including:
At A Glance
US President Donald Trump temporarily waived key provisions of the Graham Act, pausing threatened punitive tariffs of up to 100% on countries purchasing Russian oil and gas.
U.S. Secretary of State Marco Rubio stated that the administration is taking 60 days to study broader economic and geopolitical impacts before deciding next steps.
The Graham Act was passed by a bipartisan majority in September 2026 to authorize additional 100% tariffs on the five largest importers of Russian crude oil and natural gas.
Lawmakers from both political parties and Ukrainian President Volodymyr Zelenskyy criticized the pause, arguing that it undercuts Western efforts to restrict Moscow’s military funding.
- Volatility from the war involving Iran.
- Houthi attacks targeting Saudi Arabia.
- The ongoing Russia-Ukraine war.
Rubio, who is scheduled to visit India on Monday, defended the temporary reprieve by acknowledging that while India has voluntarily tried to diversify its energy portfolio, a massive supplier pivot cannot happen “from one day to the next.” He emphasized that India remains a crucial US ally and partner.
THE REACTION
The decision has ignited significant friction within Washington. Lawmakers from both political parties have criticized the pause, arguing that easing economic pressure undercuts Western efforts to choke off Moscow’s military funding.
Democratic Senator Elizabeth Warren of Massachusetts explicitly accused Trump of disregarding Congress and enabling Russian aggression, calling on lawmakers to reverse the decision.
Ukrainian President Volodymyr Zelenskyy also expressed sharp criticism, stating that relaxing restrictions directly benefits Russia.
WHAT THIS MEANS FOR INDIA
Avoids Immediate Penalties: India is temporarily shielded from steep additional U.S. tariffs and trade restrictions that were scheduled to bite under the new legislation just ahead of an impending deadline.
Breathing Room for Energy Imports: Rubio acknowledged that while India has worked to diversify its energy sources, it cannot pivot away from Russian crude “overnight” without severely impacting its domestic economy. The waiver allows Indian refiners to keep sourcing Russian oil for now.
Global Energy Market Realities: The U.S. decision was heavily influenced by wider supply disruptions—including conflict involving IranHouthi attacks near Saudi Arabia, and the ongoing war in Ukraine—which made a sudden clampdown on Russian oil too risky for global fuel prices.
No Long-Term Guarantee: Trade analysts and the Global Trade Research Initiative caution that this is a temporary, reversible reprieve rather than a permanent policy shift. New Delhi still faces policy uncertainty once the 60-day review concludes.
Diplomatic Context: The move arrives just ahead of high-level bilateral engagements, including Rubio’s visit to India, and could influence ongoing talks regarding an India-U.S. trade deal.
Future Outlook for India
For Indian refiners, the executive order ensures temporary flexibility to continue importing discounted Russian oil without immediate trade penalties. However, the Global Trade Research Initiative (GTRI) and other industry analysts warn that the reprieve does not offer a long-term guarantee, leaving energy importers to face ongoing policy uncertainty as the US administration maintains full authority to modify or restore the suspended tariffs at any time.
Quick Answers
Ask News18Passed by an overwhelming bipartisan majority in September 2026, the Graham Act authorizes an additional 100% tariff on goods from the five largest importers of Russian crude oil and natural gas if they knowingly make new purchases. The legislation was championed by Senator Lindsey O. Graham to bring punitive measures against Russia for its invasion of Ukraine.
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At the news desk for 20 years, the story of her life has revolved around finding pun, facts while reporting, on radio, heading a daily newspaper desk, teaching mass media students to now editing speci…Read More
October 18, 2026, 3:40 PM IST
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