Trump Waives Graham Act Russia Sanctions and 100% Tariffs on Top Russian Energy Buyers

Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act on Sept. 18. Treasury licensed Russian-origin diesel imports on Oct. 9. Today, Friday, Oct. 16, Trump used the law's own escape hatch to waive many of its mandatory sanctions and tariffs, one day before they were due to take effect.

What the order does

The executive order, released late Friday, waives duties under Sections 112 and 113 of the Act. It also waives sanctions and restrictions under Section 102(d) and several other provisions covering foreign persons and restrictions on individuals.

Section 113 is the big one. It authorizes tariffs of up to 100% on all goods from countries that rank among the five largest importers of Russian crude or gas and keep buying after the deadline, or that rank among the top five hubs for sanctions evasion. The Act also provides for 500% duties on Russian goods.

A summary of the order says the waiver also covers sanctions on Russia's central bank, major commercial banks, state-owned enterprises and government officials. It reaches restrictions on investment in Russia, energy trade and purchases of sovereign debt.

Trump wrote that he is "hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act." He said he sent Congress a certification that the waiver is "in the national interest of the United States," along with a report explaining the basis for it.

The law is suspended, not repealed. The waivers last until Trump or the secretary of state determines further action is necessary.

The order also directs the U.S. Trade Representative, working with other senior officials, to monitor countries' purchases of Russian crude and natural gas and their efforts to evade sanctions. The USTR is to report developments to the president.

Diesel and the midterms

The order follows Trump's announcement of a diesel arrangement with Vladimir Putin after what he called a "highly successful discussion." Trump said Moscow agreed to supply more than 300,000 tonnes immediately, about 2.25 million barrels. Further shipments are to follow in November and later months.

On Truth Social, Trump said that "between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!" He called lower fuel costs for farmers, ranchers and truckers his "Greatest Priority."

The numbers explain the pressure. Diesel hit a record $6.52 a gallon in September and was around $6.28 on Friday. The midterm elections are Nov. 3.

The Senate pushback

The waiver follows open resistance from Trump's own party. On Tuesday, Oct. 13, a dozen senators, including Republicans Mitch McConnell, Thom Tillis, Susan Collins, Lisa Murkowski and John Cornyn, urged him to rescind the diesel deal and carry out the sanctions the law authorizes.

They argued the deal would give U.S. fuel prices little relief while producing revenue Moscow could use to fund its war in Ukraine. They also said it could deepen Russia's security cooperation with China, Iran and North Korea.

"This deal is a gift to our adversary and a betrayal of our Allies; it should be rescinded," the senators wrote.

Trump's position is that the diesel deal is meant to lower fuel prices and benefit both the United States and global markets.

The law is also named for a man who spent his final months pushing for pressure on Moscow. Graham, a staunch Ukraine ally, died in July shortly after returning from Kyiv.

Who was exposed

The statute names no countries. Senate aides' indicative list of exposed buyers, as relayed by the analysis outlet Modern Diplomacy, includes China, India, Slovakia, Hungary and Azerbaijan. Some assessments add Turkey.

India's exposure is the one New Delhi watched most closely. A 100% tariff would have landed on top of a 10% tariff the U.S. already imposes on Indian imports over forced-labor goods.

India's foreign ministry said after Congress passed the bill that New Delhi "remains firmly committed to ensuring energy security for its 1.4 billion people" through diversified sourcing and evolving market dynamics. It added that the implications of its Russian oil trade for the bilateral relationship and global energy markets had been "very clearly articulated" to U.S. officials.

Waiver was built into the law

The waiver is not a legal loophole. Section 115 lets the president switch off almost every mandatory measure with a written certification to Congress that doing so serves the national interest. Modern Diplomacy's analysis calls that "a reporting requirement, not a veto."

That same analysis predicted the Act would be enforced where costs fall on Russia and waived where they would fall on American fuel buyers. Its author wrote that, three weeks before the midterms, diesel is "the variable the White House is optimising." That is the outlet's reading, not a stated administration rationale.

Sanctions on Russia imposed under earlier laws and executive orders were not part of this Act, and the waiver does not repeal the Act.

What comes next

The USTR's monitoring reports are the next concrete marker. They will show which countries the administration is tracking as Russian energy buyers while the tariffs sit suspended.

The senators who asked Trump to rescind the diesel deal have not publicly responded to the waiver. It is unclear whether Congress will try to force the sanctions back into effect before the Nov. 3 elections.