Trump suspends Russian oil penalties, India gets tariff relief

The tariff waiver should not be interpreted as an act of American generosity towards India. The decision was driven primarily by Washington’s domestic energy concerns and the approaching midterm elections, says an official.

In a stunning U-turn that has become emblematic of the Trump administration’s approach to trade and sanctions, US President Donald Trump has suspended new penalties targeting countries that buy Russian oil, giving India relief from the threat of additional tariffs of up to 100% on its exports to the United States.

The decision comes as New Delhi has continued to buy Russian crude, resisted pressure to make further trade concessions and publicly questioned Washington’s use of tariffs and sanctions as instruments of leverage.

The Indian government’s position, as conveyed to this correspondent by officials over several months and reflected in reporting by The Sunday Guardian, was that New Delhi would not compromise on its core interests under pressure from Washington. Officials indicated that India was prepared to risk displeasing the US government rather than accept demands it considered contrary to its national interests, including on energy security and the terms of a trade agreement.

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The subsequent waiver comes as New Delhi has continued to negotiate without publicly abandoning those concerns.

Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on 18 September, authorising punitive duties on goods from countries meeting specified criteria relating to purchases of Russian-origin oil and gas. The legislation exposed India, one of the world’s largest buyers of Russian crude, to the prospect of sharply higher duties on its exports to the US, its largest export destination.

On 16 October, Trump issued an executive order waiving the application of specified duties, sanctions and restrictions under the Act, citing US national interests. The waiver has no fixed expiry date and leaves the administration with the option of reconsidering the penalties later. Existing sanctions imposed under earlier executive orders remain in force.

The decision follows months of Indian resistance to US pressure over Russian oil purchases. India remained a major destination for Russian crude in September, with imports estimated at around 1.82 million barrels per day, down from 2.57 million barrels per day in July. The decline reflects changes in Russian supplies, competition from Chinese refiners and other market factors. Official said that India has adjusted its purchases but has not abandoned Russian crude as a major source of supply.