Trump Hits Pause on Tough Russia Sanctions, Sparing India from 100% Tariff Threat
Here’s the latest from Washington that has a lot of folks in India breathing easier this weekend. On Friday night, President Donald Trump signed an executive order that basically puts the brakes on a bunch of new sanctions and tariffs tied to Russian oil and gas. The measures were set to kick in under a law he’d signed just a month earlier, and they could have hit countries like India with tariffs as high as 100 percent on their goods heading to the US. Instead, he waived them, saying it was in America’s national interest.
The law in question is the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. Named after the late South Carolina senator who was a big Russia hawk, it passed Congress with strong bipartisan support. Trump signed it into law around mid-September. The idea was to squeeze Moscow’s energy revenues that help fund the war in Ukraine. It targeted Russia’s oil and gas sales, its so-called shadow fleet of tankers, and also went after the biggest buyers of that oil.
Under the rules, the five largest importers of Russian crude oil and natural gas could face an extra 100 percent duty on everything they sell to the United States if they kept buying new Russian supplies after October 18. Same deal for the top five countries helping Russia dodge existing sanctions. Goods coming straight from Russia itself could have been hit with a 500 percent tariff. The clock was ticking toward that Sunday deadline, and India was squarely in the crosshairs because it’s one of the biggest customers for discounted Russian crude.
India imports more than 88 percent of the oil it needs, and Russian barrels have made up a huge chunk of that — around 45 percent in recent months, running at about 2 million barrels a day at times. That cheap oil has helped keep fuel prices in check at home and supported the refining business. A sudden 100 percent tariff on Indian exports to the US would have been a real gut punch for manufacturers, exporters, and the overall trade relationship.
Trump’s executive order implements the law on paper but then immediately suspends the key tariff parts. He wrote that he was waiving the duties provided for in the relevant sections and certified to Congress that the pause serves US national interests. The waiver isn’t permanent; the administration can reinstate the measures later if it decides further action is needed. Officials have also been directed to keep monitoring Russian oil purchases and any sanctions-evasion activity.
This move didn’t come out of nowhere. Just a week earlier, Trump had announced a deal with Russian President Vladimir Putin for Russia to supply diesel to help bring down global energy prices. The first shipments were supposed to be more than 300,000 tonnes, with more to follow. Trump has been talking more about easing pressure on energy markets and has been openly critical of Ukrainian leadership at times. The timing also lines up with Secretary of State Marco Rubio heading to India, so the decision removes one potential point of friction right before those talks.
For India, this is welcome temporary relief. New Delhi has long argued that its energy security comes first and that it buys Russian oil on commercial terms because the discounts make sense for a country that needs reliable, affordable supplies. Indian officials had raised concerns about the Graham Act after it passed. Earlier this year, the two sides had already worked through some tariff issues — an extra 25 percent levy linked to Russian oil purchases was lifted in February as part of a broader trade framework that also brought the reciprocal tariff on Indian goods down to 18 percent. Talks on a bigger trade deal are still ongoing.
The suspension means Indian exporters don’t face an immediate cliff of higher duties that would have made their products a lot more expensive in the American market. It also lets India keep its current oil import mix without the sudden threat of secondary sanctions hanging over every new cargo. Of course, the monitoring continues, and the legal framework stays in place, so the pressure hasn’t completely disappeared. China and a few other buyers are in a similar boat.
Critics will say the waiver undercuts the original goal of starving Russia of energy revenue. Supporters will point to the need to keep global fuel prices stable, especially with other pressures in energy markets and domestic politics in the US heading into midterms. Either way, the practical result right now is that the 100 percent tariff hammer that was hanging over India has been set aside for the time being.
Trump left himself room to change course. The order makes clear the waivers stay in effect until officials decide more action is appropriate. So the story isn’t finished — it’s more like a pause button has been hit. For Indian businesses watching their US sales and for policymakers managing energy supplies, that pause is useful breathing room. How long it lasts will depend on what happens next with Russian oil flows, diesel deals, and the broader conversation between Washington and New Delhi.
Sources:
– The Indian Express
– Scroll.in
– Business Today
– Financial Express
– Times of India
– CBS News
– The Hans India
– White House executive order reports via multiple outlets (October 16-17, 2026)
Trump Hits Pause on Tough Russia Sanctions, Sparing India from 100% Tariff Threat
Here’s the latest from Washington that has a lot of folks in India breathing easier this weekend. On Friday night, President Donald Trump signed an executive order that basically puts the brakes on a bunch of new sanctions and tariffs tied to Russian oil and gas. The measures were set to kick in under a law he’d signed just a month earlier, and they could have hit countries like India with tariffs as high as 100 percent on their goods heading to the US. Instead, he waived them, saying it was in America’s national interest.
The law in question is the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. Named after the late South Carolina senator who was a big Russia hawk, it passed Congress with strong bipartisan support. Trump signed it into law around mid-September. The idea was to squeeze Moscow’s energy revenues that help fund the war in Ukraine. It targeted Russia’s oil and gas sales, its so-called shadow fleet of tankers, and also went after the biggest buyers of that oil.
Under the rules, the five largest importers of Russian crude oil and natural gas could face an extra 100 percent duty on everything they sell to the United States if they kept buying new Russian supplies after October 18. Same deal for the top five countries helping Russia dodge existing sanctions. Goods coming straight from Russia itself could have been hit with a 500 percent tariff. The clock was ticking toward that Sunday deadline, and India was squarely in the crosshairs because it’s one of the biggest customers for discounted Russian crude.
India imports more than 88 percent of the oil it needs, and Russian barrels have made up a huge chunk of that — around 45 percent in recent months, running at about 2 million barrels a day at times. That cheap oil has helped keep fuel prices in check at home and supported the refining business. A sudden 100 percent tariff on Indian exports to the US would have been a real gut punch for manufacturers, exporters, and the overall trade relationship.
Trump’s executive order implements the law on paper but then immediately suspends the key tariff parts. He wrote that he was waiving the duties provided for in the relevant sections and certified to Congress that the pause serves US national interests. The waiver isn’t permanent; the administration can reinstate the measures later if it decides further action is needed. Officials have also been directed to keep monitoring Russian oil purchases and any sanctions-evasion activity.
This move didn’t come out of nowhere. Just a week earlier, Trump had announced a deal with Russian President Vladimir Putin for Russia to supply diesel to help bring down global energy prices. The first shipments were supposed to be more than 300,000 tonnes, with more to follow. Trump has been talking more about easing pressure on energy markets and has been openly critical of Ukrainian leadership at times. The timing also lines up with Secretary of State Marco Rubio heading to India, so the decision removes one potential point of friction right before those talks.
For India, this is welcome temporary relief. New Delhi has long argued that its energy security comes first and that it buys Russian oil on commercial terms because the discounts make sense for a country that needs reliable, affordable supplies. Indian officials had raised concerns about the Graham Act after it passed. Earlier this year, the two sides had already worked through some tariff issues — an extra 25 percent levy linked to Russian oil purchases was lifted in February as part of a broader trade framework that also brought the reciprocal tariff on Indian goods down to 18 percent. Talks on a bigger trade deal are still ongoing.
The suspension means Indian exporters don’t face an immediate cliff of higher duties that would have made their products a lot more expensive in the American market. It also lets India keep its current oil import mix without the sudden threat of secondary sanctions hanging over every new cargo. Of course, the monitoring continues, and the legal framework stays in place, so the pressure hasn’t completely disappeared. China and a few other buyers are in a similar boat.
Critics will say the waiver undercuts the original goal of starving Russia of energy revenue. Supporters will point to the need to keep global fuel prices stable, especially with other pressures in energy markets and domestic politics in the US heading into midterms. Either way, the practical result right now is that the 100 percent tariff hammer that was hanging over India has been set aside for the time being.
Trump left himself room to change course. The order makes clear the waivers stay in effect until officials decide more action is appropriate. So the story isn’t finished — it’s more like a pause button has been hit. For Indian businesses watching their US sales and for policymakers managing energy supplies, that pause is useful breathing room. How long it lasts will depend on what happens next with Russian oil flows, diesel deals, and the broader conversation between Washington and New Delhi.
Sources:
– The Indian Express
– Scroll.in
– Business Today
– Financial Express
– Times of India
– CBS News
– The Hans India
– White House executive order reports via multiple outlets (October 16-17, 2026)
@Rohit Manral
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