I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act. — Donald Trump, President
Ahead of US Secretary of State Marco Rubio’s visit to India, President Donald Trump has waived sanctions, restrictions, and duties tied to Russia-related legislation, easing the immediate threat of steep tariffs on Indian exports and easing New Delhi’s energy security concerns.
The decision, announced in an executive order issued on October 16, comes a day before punitive measures targeting major buyers of Russian oil and gas were due to take effect. The waiver could help India sustain access to competitively priced Russian crude, protect export-oriented industries from additional trade pressures and create a more favourable environment for ongoing India-US trade negotiations.
“I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act,” Trump said in the order, citing the national interest of the United States. He said he had submitted the requisite certification to Congress to justify the decision. The Lindsey O. Graham Act, also cited in the order alongside the Sanctioning Russia and Iran Act of 2026, authorises sweeping measures against Russia and steep tariffs on countries that purchase Russian oil and gas, including India and China. The threatened duties could have reached 100 per cent on goods from major buyers of Russian energy.
The waiver allows the relief to remain in place until Trump or his administration determines further action is necessary, giving businesses some immediate breathing room but no guarantee of long-term policy stability.
The timing of the decision is significant as India and the United States seek to strengthen economic ties and narrow differences over a proposed bilateral trade agreement. Industry representatives said the move could ease pressure on Indian exporters while helping the country manage energy costs and maintain industrial competitiveness.
The relief is also expected to help moderate input costs across energy-intensive sectors and limit the risk of imported inflation. Continued access to competitively priced crude oil remains important for India, which relies heavily on imported energy to meet domestic demand.
Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Anant Swarup welcomed the decision, describing it as a positive development for India’s energy security.
He said access to competitively priced Russian crude would help businesses manage costs and support economic growth. However, Swarup cautioned that a waiver that can be modified or withdrawn on short notice does not provide the long-term certainty businesses need for investment and commercial planning.
He expressed hope that the decision would not complicate ongoing trade discussions and that both countries would continue building their economic partnership around stability, transparency, and mutual benefit and trust.
Deep Kapuria, an international trade expert and chairman of Hi-Tech Gears, also welcomed the move, saying it would provide a much-needed boost to Indian industry and strengthen bilateral commercial relations.
He said the decision could help narrow the remaining differences between New Delhi and Washington over the proposed trade agreement, potentially creating momentum for a broader understanding between the two countries.
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the waiver would help avert a significant risk to Indian exports by supporting buyer confidence and the continuity of orders.
Sahai said the decision could create a more favourable environment for advancing India-US trade negotiations. However, he warned that the waiver remains subject to review, leaving exporters uncertain about future contracts, production plans and investment commitments.
He stressed that exporters, particularly micro, small and medium enterprises (MSMEs), need predictable tariff policies to plan production, retain workers and expand their overseas business. He expressed hope that the temporary relief would pave the way for a lasting trade understanding, even as India continues to strengthen its export competitiveness and diversify its markets.
The latest move comes amid broader efforts by New Delhi and Washington to manage trade differences while deepening their strategic and economic partnership. For India, the immediate priority is to preserve energy security and protect export competitiveness without exposing businesses to abrupt changes in US trade policy.
While the waiver offers near-term relief, its conditional nature leaves uncertainty. Indian industry representatives now want the decision to translate into sustained policy clarity and tangible progress toward a bilateral trade agreement.
As Rubio’s India visit approaches, the move could provide a more constructive backdrop for discussions between the two countries, with energy security, tariff predictability and expanded trade ties likely to remain central to their economic engagement.