US President Donald Trump’s decision to waive additional tariffs of up to 100 per cent on major buyers of Russian oil has provided temporary relief to India, but the pressure remains as the possibility of Washington restoring the duties is still there according to the Global Trade Research Initiative (GTRI).The think tank said on Saturday that while the move eases the immediate threat of fresh trade penalties, the underlying legislation remains in force, allowing the US administration to withdraw the waiver and revive tariff pressure during future trade negotiations.“For India, the waiver buys time but offers no lasting certainty. India should protect its energy security, buy oil on commercial terms and prepare for renewed US pressure. Temporary tariff relief is no basis for permanent trade concessions,” GTRI founder Ajay Srivastava said, as quoted by PTI.Trump on Friday signed an executive order implementing the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, while simultaneously suspending certain sanctions and additional duties under the legislation.The law provides for additional tariffs of 100 per cent on goods from the five largest importers of Russian crude oil and natural gas making fresh purchases from October 18. It also sets out a 500 per cent tariff increase on Russian goods. However, Trump invoked Section 115 of the legislation to waive the duties, citing US national interests.“Pursuant to section 115(a) of the Graham Act, I hereby waive the application of any duties provided for in sections 112 and 113 of the Graham Act or this order,” the executive order stated.The waiver has no fixed expiry date and can be withdrawn. Existing Russia-related sanctions imposed under other executive orders remain unaffected.
Why did the US waive the tariffs?
GTRI claimed several factors that may have influenced Washington’s decision, including its domestic energy requirements, trade arrangements with China and ongoing negotiations with India.According to the think tank, the US agreed on October 9 to purchase Russian diesel to address domestic fuel shortages and elevated prices, making it difficult to justify penalties on other countries for similar purchases. “Punishing other countries for buying Russian energy while doing so itself would invite accusations of double standards,” Srivastava said.The report also pointed to Washington’s agreement not to raise tariffs on China until January 10, suggesting that imposing additional duties on India alone could complicate bilateral trade negotiations.GTRI noted that Russia’s share of India’s oil imports declined from 51 per cent in July to 44 per cent in August as Indian refiners increased purchases from the US and the UAE.In the meantime, despite the waiver, the US Trade Representative will continue monitoring Russian energy purchases, leaving Washington with the option of reviewing the relief.
