Washington: US President Donald Trump has for the time being exempted from imposing new sanctions on Russia and countries purchasing Russian oil and gas. In the executive order signed on October 16, 2026, Trump said that this decision is currently in the national interest of America. This step has been taken at a time when the deadline for implementation of the provisions of the new law brought with the aim of increasing pressure on Russia was near. This decision reduces the immediate threat of proposed additional tariffs on countries like India, but does not completely eliminate the possibility of future action.
What is Graham Act 2026 and why did Trump give exemption?
On September 18, 2026, the US Congress approved ‘Lindsay O. Graham Sanctioning Russia and Iran Act of 2026 was signed into law. Its aim is to increase pressure on Russia’s energy revenues and its economic resources linked to the Ukraine war.
This law has a provision to impose additional duty of up to 500 percent on goods coming from Russia and up to 100 percent tariff on goods from selected countries purchasing Russian crude oil or natural gas. However, the President has also been given the power to grant exemptions on the basis of national interest. Using this provision, Trump temporarily halted many of the new tariffs and restrictions of the law.
Could 100 percent tariff be imposed on India?
Concerns about this law had increased in countries like India and China because both purchase crude oil from Russia. The law provides for an additional 100 percent tariff on goods coming to the United States from the five largest buyers of Russian oil and gas if they make new purchases of Russian energy by a certain date.
Due to Trump’s new order, the proposed charges under this law will not be implemented at present. This may reduce immediate additional pressure on India’s trade. However, this exemption is not permanent and the US administration may take future steps depending on the circumstances.
Will America keep an eye on countries buying oil from Russia?
The Trump administration has maintained a system of surveillance. According to the executive order, the US Trade Representative (USTR) will work with the State, Finance and Energy Departments to monitor the activities of countries purchasing Russian oil and gas.
If circumstances change in the future or the US administration feels the need for additional action, new steps may be recommended to the President. This means that despite the existing exemptions, the risk of tariffs has not been completely eliminated for countries purchasing energy from Russia.
What will be the impact on the global market and India?
According to experts, the sudden crackdown on Russian oil purchases could have affected global energy supplies. In such a situation, the decision to stop the sanctions for the time being can help in reducing the uncertainty regarding the availability and prices of oil.
For India, purchasing crude oil from Russia is an important issue related to energy needs and import cost. Additional US tariffs could put pressure on Indian exporters. However, the existing exemption does not mean that India has complete protection from any future trade action.
