New Delhi: India and China have received a major reprieve after US President Donald Trump decided to hold back sweeping sanctions and duties connected with Russian energy exports, just a day before the measures were scheduled to come into force.
The decision relates to a law Trump signed last month that had empowered him to impose steep penalties on major purchasers of Russian crude.
Trump said he had paused the measures because doing so served America’s interests.
“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 US President said in an executive order issued late on Friday.
The order, however, does not permanently scrap the tariffs. It merely delays their enforcement, leaving Mr Trump free to bring them back at a later stage, as reported by NDTV.
Law Behind The Threat
Last month, Trump approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, legislation named after Senator Lindsey Graham, a prominent pro-Ukraine voice in the US Congress. Senator Graham died in July, soon after coming back from a visit to Kyiv.
Under the Act, Trump had 30 days to impose 100 per cent duties on all imports from the five biggest buyers of Russian oil — China, India, Slovakia, Hungary and Azerbaijan. The law also provided for sanctions against several Russian entities, duties of up to 500 per cent on Russian energy entering the US, and action against President Vladimir Putin and senior members of his government.
The deadline for these measures was due to end on October 18.
The law was aimed at cutting off the funds Russia relies on to continue its war in Ukraine. It targeted Russian leaders, banks and energy firms, as well as foreign governments and companies supporting Moscow’s military campaign. It also empowered the US to impose tariffs on countries that kept purchasing Russian oil and gas.
What It Meant For India
Had Trump imposed the 100 per cent tariff, Indian goods sold in the US would have faced it along with the existing 10 per cent duty on some products. The exact impact on Indian exporters would have been clear only after the US announced the tariff details.
Relations between New Delhi and Washington had soured last year after Trump added a 25 per cent tariff on Indian purchases of Russian crude, over and above a 25 per cent reciprocal duty. Those extra tariffs were withdrawn in February 2026, and the reciprocal tariff was brought down to 18 per cent under a bilateral trade arrangement.
India’s Position
Even before the latest development, India had said it would do whatever was required to safeguard its commercial and economic interests after the US Congress cleared the sanctions legislation.
“As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and based on evolving market dynamics,” the external affairs ministry had said in a statement.
The ministry further said that India’s crude trade with Russia had been raised in recent months during high-level discussions with American officials.
“Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side,” it added.
Softer Line On Moscow
Trump’s move comes at a time when he has appeared increasingly receptive towards Russia while publicly attacking Ukrainian President Volodymyr Zelensky, at one point even suggesting that Ukraine required a different leader.
Days earlier, Trump announced an arrangement with President Putin under which Russia would immediately send over 300,000 tonnes of diesel to the United States, with additional consignments planned over the following months.
Zelensky slammed the diesel agreement, describing it as “unworthy of our partners” and a “weak decision”. He claimed Moscow was responding to the deal by intensifying attacks on Ukraine.
Trump, for his part, argued that Ukraine should replace its President because Zelensky had failed to negotiate an end to the conflict.
“I suggest they get a new leader who can make a deal. For some reason (Zelensky) never does,” he said.
