India-US News: There is some welcome news for India from the United States. US President Donald Trump has decided not to implement, for the time being, certain sanctions and proposed tariffs related to Russia. This has averted—at least for now—the threat of tariffs of up to 100 percent being imposed on countries that purchase crude oil from Russia, a group that includes India.
In an executive order issued late Friday night, President Trump stated that he has granted an exemption from the implementation of these sanctions and tariffs. To support this, he submitted a certification to the US Congress, explaining that granting this exemption at the present time is in the national interest of the United States.
However, this relief is temporary. While the sanctions and tariffs have been put on hold under this order, the possibility of their implementation in the future remains.
What was the provision for the 100 percent tariff?
Last month, US President Donald Trump signed the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026,” which concerns sanctions against Russia and Iran. Under this legislation, the President was granted the authority to impose tariffs of up to 100 percent on goods arriving from countries that are major purchasers of Russian crude oil.
These countries include India, China, Slovakia, Hungary, and Azerbaijan. Furthermore, the law contains provisions to impose tariffs of up to 500 percent on energy products imported into the US from Russia, as well as to impose sanctions on various Russian entities.
The 30-day deadline for taking action under this law was set to expire on October 18. Consequently, President Trump’s new order provides immediate relief to the affected nations, including India.
What is the Graham Act?
The “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026” aims to exert pressure on the financial resources of Russia—resources that are alleged to be supporting the ongoing war against Ukraine. This measure includes provisions to target Russian officials, banks, entities linked to the energy sector, and foreign entities that support Russia’s military operations.
The law also grants the U.S. President the authority to impose tariffs on countries that conduct trade with Russia. Its objective is to exert pressure on the revenue Russia generates from oil and gas, and to reduce the energy dependence of other nations on Russia.
What relief has India received for now?
India is a major buyer of crude oil from Russia. Given this, there was a concern that India-U.S. trade could be impacted by the potential imposition of U.S. tariffs—reaching as high as 100 percent—on Indian goods. Following the latest order from Trump, this threat has been averted for the time being.
However, this decision cannot be considered a permanent reprieve. Depending on future circumstances, the U.S. administration could decide to reimpose sanctions and tariffs. Therefore, the situation for India moving forward will depend on the next steps taken by the U.S. government.
