Trump waives Graham Act tariffs on Russian oil buyers, giving India relief for now
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.
Published 18 October 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
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:
- Specific duty
- Ad valorem duty
- Anti-dumping duty
- Countervailing duty
Show answer
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.
Use this in UPSC Mains: previous-year questions
Recurring theme: Policies of major powers and India's energy security and strategic autonomy
- How to use this
Use the Graham Act episode to illustrate geopolitical and sanctions risk as a key energy security challenge, and diversification as a remedy.
- A 2026 U.S. law threatened a 100% duty on goods from the top five importers of Russian crude, including India, from 18 October 2026.
- Russia's share of India's oil imports fell from 51% in July to 44% in August 2026 as buying shifted to the U.S. and UAE.
- The October 2026 waiver has no end date, so diversified suppliers and reserves remain India's best hedge.
- How to use this
Cite the waiver to show energy security forcing India to balance Russia, the U.S. and Gulf suppliers.
- India shifted crude purchases towards the U.S. and the UAE as U.S. sanctions pressure on Russian oil rose in 2026.
- In September 2026 the MEA said India remains committed to energy security for its 1.4 billion people and will keep diversifying sources.
Background on the U.S. versus Russia rivalry that frames unilateral sanctions.
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.
- 1Section 112500% ad valorem duty increase on goods from Russia
- 2Section 113Up to 100% duty on goods from the top five importers of Russian crude and gas, and on the top five facilitators of sanctions evasion
- 3Sections 102 to 111 and 117Sanctions on Russia's shadow fleet and banks, curbs on dealings with the U.S. financial system, and limits on energy trade
- 4Section 115Lets the President waive measures by certifying to Congress that a waiver is in the U.S. national interest
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.
- 7 August 2026U.S. Senate passes the bill 86 to 11
- 16 September 2026House of Representatives agrees to the Senate version, 262 to 159
- 18 September 2026President Trump signs the Act
- 16 October 2026Executive order implements the Act and waives its tariffs and most sanctions
- 18 October 2026Date from which new purchases would have attracted the 100% duty
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.
Go deeper
Why it matters for UPSC
It is a live example of how a developed country's laws affect India's energy security, exports and strategic autonomy (GS2), and of the costs of an oil import bill (GS3).
The core idea
The Graham Act, signed on 18 September 2026, uses Secondary sanctions: it punishes not Russia alone but countries that buy from it. Its sharpest tool for India was a duty of up to 100% on goods from the five largest importers of Russian crude and gas, set as one of the Ad valorem tariffs. The President has power under Section 115 national interest waiver to suspend these measures, and he used it. The waiver has no end date, so India's buying choices, shown in India's crude oil import basket, remain under watch.
Numbers and dates to remember
- 18 September 2026: Act signed; Senate vote 86 to 11
- 16 October 2026: executive order signed
- 18 October 2026: start date for duties on new purchases, now waived
- 500%: duty increase on goods from Russia (Section 112)
- 100%: duty on top five importers and top five facilitators (Section 113)
- 51% to 44%: Russia's share of India's oil imports, July to August 2026 (GTRI)
Where to go next
- Secondary sanctions: how one country's law reaches third countries
- Ad valorem tariffs: why a 100% duty doubles the cost
- Section 115 national interest waiver: the power Trump used
- India's crude oil import basket: where India's oil comes from
Go deeper: relief or a sword on a string?
Why the waiver came. The White House said the President wants the war in Ukraine to end and that, as talks continue, the Act gives him additional authorities to pursue a peaceful resolution. Reports also link it to a U.S. deal to buy Russian diesel: the U.S. Treasury issued a general licence through April allowing Russian diesel imports. GTRI suggested Washington's own energy needs may have played a role in pausing the Secondary sanctions.
Critics in Washington. Senator Thom Tillis called the move "beyond irresponsible", noting the law passed 86 to 11. Ukraine's President Volodymyr Zelenskyy said it "definitely helps only the Russians".
The Indian view. The Global Trade Research Initiative (GTRI) said "For India, the waiver buys time but offers no lasting certainty." Its founder Ajay Srivastava warned that "Temporary tariff relief is no basis for permanent trade concessions", a point aimed at India's trade talks with the U.S. In September, when the House passed the Act, the Ministry of External Affairs had said India remains committed to energy security for its 1.4 billion people and will keep diversifying supplies.
The structural lesson. The Section 115 national interest waiver can be withdrawn at any time, and the U.S. Trade Representative will keep watching purchases. Even a pause leaves Indian refiners and exporters planning under uncertainty. The economics are clear from Ad valorem tariffs: a 100% duty would double the price of Indian goods in the U.S. market. Diversifying the India's crude oil import basket lowers that exposure but may cost more if discounts on other crude are smaller.
Secondary sanctions
How one country's law can punish India for trading with Russia.
In one line: Secondary sanctions punish third countries or foreign firms for dealing with a sanctioned state, extending one country's law beyond its borders.
Primary versus secondary
Primary sanctions bind a country's own people and companies: for example, a ban on U.S. firms investing in Russia. Secondary sanctions target outsiders, such as a foreign bank or a country that keeps trading with the target. They work because outsiders need access to the large U.S. market and the dollar system.
Examples
- The U.S. Countering America's Adversaries Through Sanctions Act (CAATSA), 2017: under its Section 231 the U.S. sanctioned Turkey in December 2020 for buying the Russian S-400 missile system.
- The Graham Act, 2026: tariffs of up to 100% on goods from the top five importers of Russian crude and gas.
Why it matters for India
Such measures are unilateral: they come from one country's law, not from the UN Security Council. They force India to weigh cheap energy against access to a key export market, which tests its strategic autonomy.
Where to go next
- Section 115 national interest waiver
- India's crude oil import basket
Ad valorem tariffs
Why a 100% duty doubles the cost of goods.
In one line: An ad valorem tariff is a tax set as a percentage of the value of imported goods.
How it works
"Ad valorem" is Latin for "according to value". A 25% ad valorem duty on goods worth ₹1 lakh adds ₹25,000. A 100% duty doubles the landed cost, and a 500% duty makes most trade impossible. The other main type is a specific duty, a fixed amount per unit, such as a set charge per tonne.
In this case
- Section 112 of the Graham Act provides for a 500% ad valorem increase on goods from Russia.
- Section 113 provides for up to 100% on goods from the top five importers of Russian crude and gas that make new purchases, and on the top five facilitators of sanctions evasion.
- Both were set up and then waived by the 16 October 2026 order.
Why it matters for India
The U.S. is a major market for Indian goods, so a 100% duty would have priced many exporters out. That is why a tariff on trade was used to change India's energy choices.
Where to go next
Section 115 national interest waiver
The power used to pause the penalties, and why it can be withdrawn.
In one line: Section 115 of the Graham Act lets the U.S. President waive its tariffs and sanctions by certifying to Congress that doing so is in the national interest.
What the order did
Section 4 of the 16 October 2026 order cited Section 115(a) to waive the duties under Sections 112 and 113, and the sanctions under Sections 102(a), 102(d), 102(e), 103 to 111 and 117. It did not undo Russia sanctions already in place under earlier executive orders.
How long it lasts
The waivers remain in effect 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 monitor purchases and inform the President of anything that may call for action. The Act's tariff and sanctions powers run for five years from enactment.
Why it matters
A waiver that can be withdrawn at short notice keeps pressure on buyers such as India without imposing the cost now.
Where to go next
- Ad valorem tariffs
- India's crude oil import basket
India's crude oil import basket
Where India's oil comes from and why diversity matters.
In one line: India imports most of the crude oil it refines, and the share bought from Russia rises and falls with prices, discounts and outside pressure.
The shift
Russia's share of India's crude imports has exceeded 30% in recent years, says Rajani Sinha, chief economist at CareEdge. According to GTRI, Russia's share fell from 51% in July 2026 to 44% in August 2026, as purchases moved towards the U.S. and the UAE. Sinha says Russian crude is now valued more for reliable supply than for discounts, which have narrowed.
Why diversity matters
- It reduces exposure to sanctions or tariffs tied to one supplier.
- It protects against shocks in one route, such as conflict in West Asia.
- It keeps bargaining power with sellers.
The trade-off
Buying more from other suppliers can cost more if their crude is priced higher or needs longer shipping. Analysts quoted by The Tribune say a lasting waiver could cut freight costs and ease payments for Russian crude.
Where to go next
Take the 18 October 2026 quiz: 30 Prelims-style questions with answers