US waives proposed 100% tariffs on Indian imports under Russia sanctions law

US President Donald Trump signed an executive order on 17 October waiving planned sanctions and tariffs of up to 100% on Indian goods under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The decision came one day before the 18 October enforcement deadline specified in the legislation.

The executive order suspends the implementation of the measures rather than permanently repealing them, according to reporting by NDTV cited in the report. This leaves the US administration with the option to enforce the tariffs and sanctions at a later point.

Trump cited national interest for issuing the decision. In the executive order, Trump stated,

"I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act. I have submitted to Congress a certification that the issuance of such a waiver at this time is in the national interest of the United States."

The Graham Act was passed last month with the objective of restricting financial resources supporting Russia's military operations in Ukraine. It specifically targeted Russian government officials, financial institutions, energy interests, and foreign partners that support Moscow.

Under the law, goods from the top five buyers of Russian crude oil and natural gas—China, India, Slovakia, Hungary, and Azerbaijan—faced tariffs of up to 100%. The legislation created potential tariff exposure for up to 10 countries. It also included proposed 500% tariffs on US imports of Russian energy products and direct sanctions against Russian President Vladimir Putin, senior officials, and key Russian entities.

Trade history and energy policy

For India, a major importer of Russian crude oil, the proposed 100% penalty would have been levied on top of an existing 10% US tariff previously imposed over forced-labour concerns.

The waiver provides relief from an immediate economic threat to Indian trade. New Delhi had previously faced trade tensions with Washington regarding its purchases of Russian crude oil. Those tensions included an additional 25% tariff on Indian imports, which was subsequently removed in February 2026 under a US-India trade framework. Before the waiver was issued, India reiterated its determination to protect its economic and trade interests.

The decision follows an agreement between Trump and Putin to supply diesel to stabilize energy markets. By issuing the executive order before the deadline, the US administration halted the immediate application of new import duties on major foreign buyers of Russian energy.