Trump Waives Tariffs on Russian Oil Buyers, Offering Temporary Relief to India

US President Donald Trump has waived tariffs of up to 100% on goods imported from the five largest purchasers of Russian oil or gas, along with specified sanctions under the Lindsey O Graham Sanctioning Russia and Iran Act, citing national interest. In an executive order signed Friday night, Trump waived the application of specified sanctions, restrictions and duties under the Act, days after striking a deal with Russia for the supply of diesel to the US and global markets. “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said. Trump’s decision to hold off on punitive tariffs against countries buying Russian oil has offered India temporary relief, easing a major concern for exporters and potentially clearing the way for progress on the bilateral trade deal. However, Washington’s power to revive the tariff threat and a separate US investigation into structural excess capacity continue to cloud the negotiations. India has maintained that clarity on future US tariff action is essential before it can conclude the agreement. Commerce and Industry Minister Piyush Goyal said on Thursday that the first tranche of the deal was in the final stages of settling its contours and legal drafting. India would seek to operationalise it only when the terms offered a “comparable advantage or competitive advantage” over rival countries, he said. The latest US move, however, does not completely remove the underlying uncertainty. The Trump administration retains the authority to withdraw the waiver and impose tariffs of up to 100% on countries purchasing Russian oil under the Sanctioning Russia and Iran Act (SRIA). “Temporary tariff relief is no basis for permanent trade concessions (by India). SRIA remains law, leaving Washington free to revive the tariff threat to extract concessions in bilateral trade talks,” said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI). The uncertainty is compounded by a US investigation under Section 301 of the Trade Act into structural excess capacity allegedly enabled by government policies. The probe could pave the way for another round of tariffs, adding a fresh layer of risk for Indian exporters even if the Russian oil-related threat remains suspended. Another Section 301 tariff of 10% related to ‘forced labour’ is already applied on India and five dozen other countries for exports to the US. The SRIA, passed by the US Congress in September and signed into law by Trump on September 18, provided a 30-day window for major buyers of Russian energy, including India, to cut purchases or seek presidential waivers. It authorised the President to impose tariffs of up to 100% on imports from countries continuing to buy Russian oil. Trump has deferred the punitive action, citing national interest. In an executive order, he said he had submitted a certification to Congress that issuing a waiver at this time was in the interests of the United States. The decision also highlights contradictions in Washington’s approach to Russian energy. The US entered the Russian diesel market on October 9 after securing a waiver from its own restrictions, valid until April next year. This makes it harder to justify penalising other buyers, Srivastava said. China , meanwhile, remains protected from further US tariff increases until January 10. “The waiver exposes the uncertainty at the heart of US trade policy: Washington threatens penalties, then retreats when enforcing them becomes inconvenient,” he said. The tariff threat had prompted Indian exporters to frontload shipments to the US in anticipation of higher duties. Merchandise exports to the American market rose 48% year-on-year in September, as businesses sought to ship orders ahead of possible tariff action.