# Trump waives Graham Act tariffs on Russian oil buyers, giving India relief for now

URL: https://upsc.help/current-affairs/2026-10-18/us-waives-graham-act-russia-tariffs/
Date: 18 October 2026 (2026-10-18)
Source: The Hindu, World
UPSC papers: GS2, GS3
Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing.

**In one line:** A U.S. executive order of 16 October 2026 put in place, and then immediately waived, the Graham Act's tariffs on big buyers of Russian oil, sparing India a possible 100% duty for now.

On 16 October 2026, U.S. President Donald Trump signed an executive order implementing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 and, in the same order, waiving its main penalties. The Act, signed on 18 September 2026 after the Senate passed it 86 to 11, provides for a 500% ad valorem duty increase on goods from Russia and a 100% duty on goods from the five largest importers of Russian crude oil and natural gas that knowingly make new purchases on or after 18 October 2026. India, a leading buyer of Russian crude, was exposed to that 100% duty.

Citing Section 115(a) of the Act, the order waived the duties under Sections 112 and 113 and most sanctions provisions, including those under Sections 102 to 111 and 117. The waivers have no fixed end date: they last until the President or the Secretary of State decides further action is appropriate. The U.S. Trade Representative, with the State, Treasury and Energy departments, must keep monitoring countries' purchases of Russian oil and gas. Russia sanctions already in force under earlier executive orders are not affected. The White House said President Trump wants the war in Ukraine to end and that, as talks continue, the Act gives him additional authorities to pursue a peaceful resolution.

The move followed a U.S. Treasury general licence, valid through April, allowing Russian diesel imports into the U.S. Critics including Senator Thom Tillis called the waiver 'beyond irresponsible', and Ukraine's President Volodymyr Zelenskyy said the move 'definitely helps only the Russians'. In India, the Global Trade Research Initiative (GTRI) said 'the waiver buys time but offers no lasting certainty' and noted that Russia's share of India's oil imports fell from 51% in July to 44% in August 2026. When the House passed the Act in September, the Ministry of External Affairs said India remains committed to energy security for its 1.4 billion people and will keep diversifying sources.

## Prelims facts

- The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed on 18 September 2026; the Senate passed it 86 to 11.
- It provides for a 500% ad valorem duty increase on Russian goods and up to 100% on goods from the top five importers of Russian crude and gas.
- A 16 October 2026 executive order waived these duties under Section 115(a), by certifying that a waiver is in the U.S. national interest.
- The waivers have no end date and can be withdrawn; the U.S. Trade Representative must keep monitoring purchases.
- GTRI says Russia's share of India's oil imports fell from 51% in July to 44% in August 2026.

## Quick recall

- **When was the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 signed?** 18 September 2026.
- **By what vote did the U.S. Senate pass the Graham Act?** 86 to 11.
- **What duty does the Act provide for on goods from the top five importers of Russian crude and gas?** Up to 100% ad valorem, on new purchases.
- **What duty increase does the Act provide for on goods from Russia?** 500% ad valorem (Section 112).
- **Which section of the Act did the 16 October 2026 order use to waive the duties?** Section 115(a), on certification that the waiver is in the U.S. national interest.
- **Who must keep monitoring purchases of Russian oil and gas after the waiver?** The U.S. Trade Representative, consulting the State, Treasury and Energy departments.
- **Under which U.S. law was Turkey sanctioned in December 2020 for buying the S-400?** CAATSA, 2017 (Section 231).
- **Russia's share of India's oil imports in July and August 2026, according to GTRI?** 51% in July, 44% in August.

## Prelims practice question

A tariff levied as a fixed percentage of the value of imported goods is known as:

(a) Specific duty
(b) Ad valorem duty
(c) Anti-dumping duty
(d) Countervailing duty

Answer: (b) Ad valorem duty. An ad valorem duty is a percentage of value, like the Graham Act's 500% and 100% duties. A specific duty is a fixed amount per unit; anti-dumping and countervailing duties answer dumping and subsidies, whatever their form.

## UPSC previous-year questions this connects to

- UPSC Mains 2026, GS3: Explain the key challenges for India's energy security. What measures do you suggest for ensuring energy security along with economic growth and sustainability? (https://upsc.help/pyq/q061-key-challenges-india-s-energy-security-measures/)
  How to use this story in the answer: Use the Graham Act episode to illustrate geopolitical and sanctions risk as a key energy security challenge, and diversification as a remedy.
- UPSC Mains 2025, GS2: "Energy security constitutes the dominant kingpin of India's foreign policy, and is linked with India's overarching influence in Middle Eastern countries." How would you integrate energy security with India's foreign policy trajectories in the coming years? (https://upsc.help/pyq/q033-energy-security-constitutes-dominant-kingpin-india-s/)
  How to use this story in the answer: Cite the waiver to show energy security forcing India to balance Russia, the U.S. and Gulf suppliers.
- UPSC Mains 2025, GS2: "The reform process in the United Nations remains unresolved, because of the delicate imbalance of East and West and entanglement of the USA vs. Russo-Chinese alliance." Examine and critically evaluate the East-West policy confrontations in this regard. (https://upsc.help/pyq/q012-reform-process-united-nations-remains-unresolved-because/)

## Mains practice question

The waiver of U.S. tariffs on buyers of Russian oil in October 2026 brings relief but not certainty for India. Examine how unilateral secondary sanctions affect India's energy security and strategic autonomy, and suggest a response. (250 words)

### Model answer

On 16 October 2026 the U.S. President implemented and simultaneously waived the Graham Act's penalties, including a duty of up to 100% on goods from the top five importers of Russian crude and gas, which would have applied from 18 October.

## How secondary sanctions affect India
- **Energy security:** India imports most of its crude; Russia's share was 51% in July 2026 before falling to 44% in August (GTRI), showing how outside pressure reshapes sourcing.
- **Trade exposure:** a 100% ad valorem duty would double the cost of Indian goods in the U.S. market, linking energy choices to export jobs.
- **Strategic autonomy:** unilateral measures from one country's law, like CAATSA earlier, test India's independent foreign policy.
- **Uncertainty:** the Section 115 waiver has no end date and the U.S. Trade Representative keeps monitoring purchases, so planning by refiners and exporters stays hard.

## The other side
- The waiver itself shows such laws bend to the sanctioning country's own interests, such as its Russian diesel imports through a Treasury licence.
- CareEdge's Rajani Sinha says narrower discounts mean Russian crude is now valued more for supply reliability than price.

## Way forward
- Keep diversifying suppliers across the U.S., the UAE and others, as India has done.
- Avoid permanent trade concessions for temporary relief, as GTRI warns.
- Build strategic petroleum reserves and push payment options that reduce exposure.
- Use the India-U.S. trade talks to seek predictable terms.

India's best shield is a diverse import basket and steady diplomacy, so that no single law abroad can hold its energy security hostage.

## The basics

## Why this matters
India is one of the largest buyers of Russian crude oil. A U.S. law signed on 18 September 2026 threatened extra tariffs of up to 100% on goods from the biggest buyers that kept purchasing, from 18 October 2026. On 16 October, President Donald Trump signed an executive order that set up those tariffs and, in the same order, waived them. Understanding how this works explains a recurring UPSC theme: how the policies of developed countries shape India's energy security and trade.

## Primary and secondary sanctions
Primary sanctions stop a country's own citizens and firms from dealing with a target, here Russia. Secondary sanctions go further: they punish third countries or foreign firms that deal with the target. The Graham Act's 100% tariff on big buyers of Russian oil is a secondary measure, because it hits India, not Russia. The U.S. used a similar tool under CAATSA, its 2017 sanctions law, when it sanctioned Turkey in December 2020 for buying the Russian S-400 missile system. See Secondary sanctions.

## What 'ad valorem' means
An ad valorem duty is a tax set as a percentage of the value of the goods. A 100% ad valorem duty on a $1,000 shipment adds $1,000, doubling its cost to the buyer. This is why the threat mattered so much for Indian exporters to the U.S. Read Ad valorem tariffs.

## Why the waiver does not end the risk
The waivers have no fixed end date. They stay in force until the President or the Secretary of State decides further action is needed, and the U.S. Trade Representative must keep monitoring countries' purchases of Russian oil and gas. That is why analysts call it a pause, not a reversal. For India, the lesson is to keep its oil sourcing diverse. Read India's crude oil import basket.

## Sources

- https://www.whitehouse.gov/presidential-actions/2026/10/implementing-the-lindsey-o-graham-sanctioning-russia-and-iran-act-of-2026/
- https://abcnews.com/Politics/trump-signs-order-waiving-graham-act-sanctions-russia/story?id=137341529
- https://www.tribuneindia.com/news/crude-purchases/trumps-russian-oil-tariff-waiver-offers-india-relief-but-experts-warn-of-renewed-us-pressure
- https://www.tribuneindia.com/news/india/relief-for-india-as-trump-waives-russia-sanctions/
- https://www.drishtiias.com/daily-updates/daily-news-analysis/caatsa-sanctions-on-turkey/print_manually
- https://en.wikipedia.org/wiki/Sanctioning_Russia_Act