October 19, 2026
3 mins read

US tariff storm passes, for now

The move offers India breathing space after Washington’s proposed tariff regime raised concerns about the impact on bilateral trade, energy security and export competitiveness…reports Asian Lite News Desk

US President Donald Trump has suspended key Russia-related sanctions and tariff provisions that threatened to impose duties of up to 100 per cent on imports from countries buying Russian oil and gas, giving India and China temporary relief just days before the measures were due to take effect.

In an executive order issued on Friday, Trump said the decision was in the national interest of the United States. The waiver covers significant sanctions and duties authorised under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law on 18 September.

The legislation was designed to increase economic pressure on Moscow over its war against Ukraine. However, the latest order suspends key provisions rather than permanently removing the administration’s authority to impose penalties.

The White House said the waiver would remain in force until Trump or senior officials determined that further action was appropriate. The administration will continue monitoring countries’ purchases of Russian energy and activities linked to sanctions evasion.

The move offers India breathing space after Washington’s proposed tariff regime raised concerns about the impact on bilateral trade, energy security and export competitiveness.

Under the new law, the United States could impose tariffs of up to 100 per cent on goods from major importers of Russian crude oil and natural gas, as well as countries knowingly making new purchases of Russian energy after the statutory deadline. Separate provisions targeted countries helping Russia evade sanctions.

India and China, two of the largest buyers of Russian oil, faced the prospect of additional trade penalties if the measures were implemented.

For India, the threat came against the backdrop of recent tariff disputes with Washington. Trump had previously imposed additional duties on Indian imports over New Delhi’s purchases of Russian crude, alongside broader reciprocal tariffs. Those additional Russia-related tariffs were removed in February 2026, while the reciprocal tariff rate was reduced to 18 per cent under a bilateral trade framework.

India has repeatedly defended its energy policy, arguing that securing affordable and reliable supplies for its population of about 1.4 billion people remains a priority.

The Ministry of External Affairs has said India would continue diversifying its energy sources in response to market conditions. It has also warned Washington that measures targeting its oil trade with Russia could affect bilateral relations and international energy markets.

Energy prices and Russia policy

Trump’s decision comes amid concerns that additional restrictions on Russian energy could push global oil prices higher. Reuters reported that the proposed measures risked adding to fuel-price pressures in the United States, where energy costs have been affected by the conflict involving the US and Israel against Iran.

The administration has also faced criticism over a separate arrangement involving Russian diesel supplies intended to increase availability on global markets and ease fuel prices. Critics have argued that easing restrictions could generate revenue for Moscow while its war against Ukraine continues.

The waiver marks a significant development in Washington’s approach to the sanctions framework, which was backed by the late Senator Lindsey Graham, a prominent supporter of Ukraine. The legislation targeted Russian officials, financial institutions and energy interests, while giving the president broad powers to penalise countries maintaining energy links with Moscow.

ALSO READ-https://asianlite.com/2026/top-news/tariffs-hit-us-china-trade-asia-reaps-the-benefits/

READ MORE-https://asianlite.com/2026/top-news/beyond-tariffs-india-courts-american-capital/

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