India has avoided an immediate threat of US tariffs of up to 100% on goods from major buyers of Russian oil and gas after President Donald Trump waived key provisions of the Lindsey O Graham Sanctioning Russia and Iran Act for 60 days.
US Secretary of State Marco Rubio said the pause would allow the administration to assess the economic consequences of imposing sanctions and tariffs on countries including India and China. He cited India’s continued dependence on Russian energy, its importance as a US ally and pressure on global energy supplies as factors behind the decision.
The waiver followed Trump’s invocation of Section 115 of the Graham Act on Friday. In an order, Trump said he had submitted to Congress a certification that issuing the waiver was in the national interest of the United States, along with a report explaining the basis for that certification.
The measure places on hold duties covered by Sections 112 and 113 of the Act. Those provisions allowed the US president to raise duties on goods imported from Russia to as much as 500% of their value. They also allowed duties of up to 100% on goods imported from the five largest buyers of Russian-origin crude oil or natural gas, a provision that covered India and China.
Rubio said India had diversified its energy portfolio but still obtained a substantial amount of energy from Russia. He said changing those supplies could not happen overnight and described India as an important ally and partner of the United States.
The decision has implications beyond bilateral trade because imported energy is closely linked to transport, industrial production, electricity costs and household expenses. The administration’s decision to delay the measures means Indian refiners, fuel suppliers and other businesses have a 60-day period before the US determines whether to proceed with the proposed combination of sanctions and tariffs.
Rubio also pointed to wider pressure on energy markets. He referred to tensions involving Iran and the Strait of Hormuz, attacks by the Houthis affecting Saudi Arabia, and the Russia-Ukraine war. He said attacks on energy infrastructure connected to the conflict were affecting global prices and made it necessary to study the consequences of new measures before implementing them.
The waiver came after Trump announced a diesel supply arrangement with Russia. Under that arrangement, Russia would immediately supply more than 300,000 tonnes of diesel, followed by another 500,000 tonnes during November and 1 million tonnes immediately thereafter.
Rubio is scheduled to visit India later this month, including Jamnagar, home to one of the world’s largest refineries. The 60-day window will remain the immediate policy milestone as the US administration examines the effect of targeting countries that continue to purchase Russian energy while global supplies face pressure from multiple geopolitical conflicts.
