US President Donald Trump has waived tariffs and sanctions that could have penalised India and four other countries for purchasing Russian oil and gas, citing national interests in an executive order unveiled on Friday. The move comes a month after the US House of Representatives passed legislation empowering the president to impose tariffs of up to 100% on the five largest purchasers of Russian energy.
The decision also follows a diesel supply arrangement with Moscow announced last week, alongside a series of steps easing restrictions on Russia and its economic partners. The waivers will remain in effect until further notice.
Trump’s move has been interpreted as an attempt to contain domestic energy prices ahead of the crucial US midterm elections on November 3. Concerns over inflation, affordability and the cost of living, including the impact of elevated energy prices, have been weighing on support for the president and his Republican Party, which is widely expected to face electoral difficulties.
The executive order effectively suspends key punitive provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act, signed into law in September. However, the administration will continue monitoring Russian energy imports and possible efforts by other countries to circumvent sanctions.
What the sanctions law allowed
The legislation authorised the US president to impose tariffs of up to 500% on Russian exports to the United States and up to 100% on goods from the five largest purchasers of Russian energy that help Moscow evade oil sanctions.
India, China, Azerbaijan, Slovakia and Hungary were identified as the five countries potentially exposed to the higher tariffs.
The act also provided for additional sanctions against Russian financial institutions and their international partners, with the aim of increasing pressure on Moscow to end the war in Ukraine. Trump’s Friday executive order waived these sanctions on national-interest grounds, alongside the tariff provisions.
The exemptions do not, however, remove the administration’s oversight of Russian energy transactions. The order directs the US Trade Representative, in consultation with the secretary of state, the secretary of the treasury, the secretary of energy and other relevant senior officials, to monitor imports and purchases of Russian crude oil and natural gas, as well as assistance provided by other countries in evading sanctions.
The Trade Representative has been instructed to inform the president promptly of any circumstances that could warrant further action, including reconsideration of the waivers.
Russian diesel deal preceded tariff relief
On October 9, Trump announced an arrangement under which Russia could supply approximately five million tonnes of diesel to global energy markets over the coming months.
The US Treasury issued a general licence on the same day, permitting global buyers to purchase Russian diesel without facing sanctions under the licence until April 7, 2027.
Trump presented the arrangement as a means of bringing down fuel costs in the United States and elsewhere. In a post on Truth Social, he said lower prices for Americans, particularly farmers, ranchers and truckers, were his top priority. He also linked the expected fall in diesel prices to what he described as US control of the Strait of Hormuz and the announcement concerning Russian energy supplies.
The president has repeatedly expressed frustration with Ukraine over its attacks on Russian oil refineries. Washington has attributed part of the rise in global energy prices to these strikes.
The latest waivers mark a further easing of the US administration’s approach to Russian energy trade, even as Washington retains the authority to revisit its decisions if officials identify developments that warrant additional measures.