The US waiver of Russia-linked sanctions under the Graham Act has paused tariffs of up to 100% that threatened India and four other buyers of Russian crude, though the relief is temporary. President Donald Trump signed the waiver on national-interest grounds a day before the law’s deadline, and it suspends the measures without repealing them.
The law at the centre of the move is the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. According to Business Today, it gave the White House until October 18 to impose tariffs of up to 100% on major buyers of Russian crude, naming India, China, Slovakia, Hungary and Azerbaijan. Trump’s executive order, released late last Friday, states: “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act.”
What Does the Graham Act Waiver Mean for Indian Exporters?
For now, Indian exporters avoid a possible 100% duty stacked on existing US tariffs. Business Today reports that a 25% extra tariff tied to Russian crude, imposed in 2025, was removed in February 2026, and that the reciprocal rate on India was cut to 18% under a bilateral trade framework. A fresh 100% levy would have wiped out the competitiveness of Indian goods in the US market.
The order suspends the penalties but does not cancel them, so Washington can still impose them later. Outlook India reports that the administration will take a 60-day pause before deciding on new sanctions on Russia and trading partners such as India. Outlook India also cites provisions in the law for tariffs of up to 500% on Russian exports to the US.
What Has India Said About Russian Oil and Energy Security?
India’s foreign ministry said it is “firmly committed” to the energy security of its 1.4 billion people, through diversified sourcing and based on market conditions, as reported by Business Today. Outlook India notes that India has diversified its energy supplies but still draws a substantial share from Russia. The report adds that Jaishankar had earlier raised India’s concerns about the sanctions law with Rubio at the UN General Assembly.
How Does the Waiver Link to India-US Trade Talks?
Secretary of State Marco Rubio is visiting India from October 17 to 22, and External Affairs Minister S. Jaishankar was due to meet him in Mumbai on October 20, according to Business Today. Rubio said: “We’re trying to finalise a trade deal with India right now. We’re very close to doing that.” Outlook India lists trade negotiations with India among the factors in the waiver decision.
Market and Trade Reaction
The sources reviewed do not report a specific market or currency reaction to the waiver, and no industry body statement was found at the time of writing. Outlook India says Russian presidential envoy Kirill Dmitriev called the waiver a “Historic Moment”. The US midterm elections are on November 3.
What Happens Next?
Watch for the outcome of the Rubio-Jaishankar talks, any announcement on an India-US trade deal, and the administration’s decision at the end of the reported 60-day pause. Reports differ on the size of a recently announced Russia diesel supply arrangement, so that figure is not used here. Refiners and exporters will track whether the waiver is extended or lapses.
Frequently Asked Questions
What is the Graham Act waiver?
It is a presidential order suspending sanctions, restrictions and duties under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, issued on national-interest grounds before the October 18 deadline.
Does the waiver remove the threat of 100% tariffs on India?
No. It suspends the tariffs but does not repeal them, so they can be imposed later.
Which countries were exposed to the tariffs?
Business Today lists India, China, Slovakia, Hungary and Azerbaijan as the affected buyers of Russian crude.
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