US President Donald Trump has signed an executive order waiving the threat of up to 100% tariffs on India and other major buyers of Russian oil, invoking a national interest provision under Section 115(a) of the Lindsey Graham sanctioning Russia and Iran Act of 2026. This sudden policy pivot directly follows a new bilateral agreement between Washington and Moscow to secure Russian diesel exports for global and U.S. markets, a strategic move specifically designed to suppress soaring domestic fuel prices ahead of the upcoming congressional midterm elections.
By issuing this waiver, the administration effectively sets aside the punitive duties and restrictions outlined in Sections 112 and 113 of the Graham Act that had previously targeted foreign entities doing business with Russia.
This sweeping directive provides immediate economic relief to New Delhi, allowing Indian refiners to maintain continuity in sourcing crude oil amid severe global supply constraints caused by escalating conflicts in West Asia. The decision marks a significant tactical shift toward energy relief as domestic gasoline and diesel spikes began threatening the administration’s economic outlook.
Commenting on the executive action, Secretary of State Marco Rubio noted that the administration will utilize a 60-day review window to thoroughly analyze the global and domestic economic impacts of these integrated trade and sanction measures before making further policy determinations.
News Edit KV Raman
