Why Has Donald Trump Paused Proposed 100% Tariffs on India and China Over Russian Oil?
US President Donald Trump has waived key sanctions provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act, putting proposed tariffs of up to 100% on major buyers of Russian oil and gas, including India and China, on hold for 60 days. US Secretary of State Marco Rubio said the administration would use the period to assess the potential impact of the proposed measures on the global and American economies.
US President Donald Trump has waived key sanctions provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act, putting proposed tariffs of up to 100% on major buyers of Russian oil and gas, including India and China, on hold for 60 days. US Secretary of State Marco Rubio said the administration would use the period to assess the potential impact of the proposed measures on the global and American economies.
Rubio said India’s continued reliance on Russian energy, its strategic importance as a US ally and growing pressure on global energy supplies were among the factors behind the decision. He noted that although India has diversified its energy sources, it still imports a substantial amount of energy from Russia and cannot shift away from these supplies overnight.
The Graham Act provisions would have allowed Trump to impose tariffs of up to 100% on goods imported from the five largest buyers of Russian-origin crude oil or natural gas. The waiver temporarily suspends the relevant duties while the administration evaluates the economic and geopolitical implications.
Trump invoked Section 115 of the Graham Act to issue the waiver, certifying that the decision was in the national interest of the United States. The provisions also allowed duties of up to 500% on goods imported from Russia.
Rubio also cited geopolitical tensions affecting energy supplies, including the Russia-Ukraine war, developments involving Iran and the Strait of Hormuz, and Houthi attacks targeting Saudi Arabia. He said disruptions to energy infrastructure and supply routes were contributing to uncertainty in global energy markets.
The decision comes amid continued discussions over US-India relations and international energy trade. Rubio is scheduled to visit India later this month, including Jamnagar, home to one of the world's largest oil-refining complexes.
The 60-day waiver gives the Trump administration additional time to determine how to balance pressure on countries purchasing Russian energy with the potential consequences for global oil prices, energy security and the US economy.
(The above story first appeared on LatestLY on Oct 18, 2026 04:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
