India received a temporary breather from a new edition of crushing US tariffs after President Donald Trump waived the application of duties linked to the purchase of Russian oil for an indefinite period, exposing the uncertainties that continue to dog Indo-US bilateral relations.
Late on Friday, Trump issued an executive order waiving the application of the punitive tariffs under the newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (SRIA), giving India relief from additional duties of up to 100 per cent linked to Russian oil purchases.
Trump invoked a waiver clause under the law, which was championed by the late senator Lindsey Graham as a way to punish Moscow for its invasion of Ukraine. The Act gave Trump 30 days to impose 100 per cent tariffs on all goods from the top five buyers of Russian crude. It would also slap sanctions on numerous Russian entities and impose 500 per cent tariffs on all US imports of Russian energy products. That one-month deadline was set to expire on October 18.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act. I have submitted to the Congress a certification that the issuance of such a waiver at this time is in the national interests of the United States,” Trump said in an executive order released late Friday.
While the waiver would allow India to buy Russian oil at a time when crude oil prices topped $100 a barrel in the wake of renewed hostilities in West Asia, experts caution that the waiver does not bring lasting certainty. India is the largest importer of Russian seaborne crude, averaging 1.8 million barrels per day (bpd) this year.
Trade intelligence firm GTRI points out that SRIA remains in law, leaving Washington free to revive the tariff threat to extract concessions in bilateral trade talks. Trump’s decision to waive the 100 per cent tariff followed its domestic political realities, Ajay Srivastava, founder of GTRI, observed.
Under its October 9 agreement with Russia, the US had decided to buy diesel from Russia to ease domestic shortages and high fuel prices ahead of midterm elections where Trump’s Republican Party appeared to be on the backfoot. Washington had also agreed not to raise tariffs on China until January 10 under a deal reached during President Xi Jinping’s visit to the US last month.
“The message is clear — US interests determine when penalties apply, while the ability to retaliate helps secure protection,” Srivastava said.
India was subjected to a crushing tariff of 50 per cent from August 2025 as a penalty for buying Russian oil and allegedly funding the Kremlin’s war on Ukraine. It was partially withdrawn in February after India and the US reached an interim trade agreement. However, the penalty tariff was fully withdrawn when the US Supreme Court voided Trump’s power to impose sweeping tariffs under the International Emergency Economic Powers Act on February 20.
Since then, India and the US have remained engaged in talks to finalise the bilateral trade agreement without further progress. Indian finance minister Nirmala Sitharaman earlier this month said the trade talks hit a “plateau”, as further concessions are “very very difficult” for both sides.
The waiver announced late on Friday brought relief for Indian exporters even though uncertainties remain. The waiver has no fixed expiry date, but it can be withdrawn. The US Trade Representative will continue monitoring Russian energy purchases, allowing Washington to review the waiver and retain the tariff threat as leverage in future negotiations.
Federation of Indian Export Organisations (FIEO) director general Ajay Sahai said the step averted a major risk to India’s exports and should strengthen buyer confidence and order flows, particularly in employment-intensive sectors.