WASHINGTON / AsiaWire.IO / – On October 16, President Donald Trump exercised his authority to waive critical US sanctions and tariffs related to Russia, just days before their scheduled implementation. The actions are based on the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law last month. In a White House-issued executive order, Trump stated that the waiver aligns with the national interests of the United States. The sanctions were set to take effect on October 18, but the order offered no additional explanation for this decision.
The legislation would have levied tariffs as high as 100% on all goods entering the US from the five top importers of Russian crude oil or natural gas. It also stipulated that any country knowingly purchasing Russian oil or gas 30 days after the law’s enactment would face the same tariffs. Additionally, it targeted the leading five nations assisting Russia in evading sanctions. The law separately permitted tariffs up to 500% on all Russian-origin goods. Furthermore, sanctions on foreign banks conducting significant transactions with Russian state-owned banks were also waived.
The executive order indicated that the waiver will stay in effect until Trump or his senior officials decide that further measures are warranted. Existing sanctions imposed through previous executive orders remain unaffected. The law’s provisions concerning Russia are scheduled to expire in 2031. The White House issued a statement on Saturday asserting that the legislation grants the president additional authority to pursue peace. Spokesperson Taylor Rogers explained that enforcing the sanctions now could hinder negotiations. She added that the president retains the authority to utilize these powers at any time.
Graham Act Achieves Bipartisan Congressional Support
The legislation was championed primarily by the late Senator Lindsey Graham, a Republican from South Carolina. Following Graham’s sudden death in July, lawmakers from both parties rallied behind the bill as a tribute to his legacy. The Senate approved the measure 86-11 on August 7, and the House passed the final version 262-159 on September 16. Trump signed the legislation into law on September 18. It targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to evade sanctions.
The waiver sparked criticism from members of both political parties. Republican Senator Thom Tillis of North Carolina called the move beyond irresponsible. Senator John Cornyn of Texas stated that Graham would be appalled by the decision. Democratic Senator Chuck Schumer of New York labeled the arrangement with Moscow as a deal with the devil. Conversely, Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy remarked that the decision only benefits Russia and does not help end the war.
Russian Diesel Deal Influences Energy Strategy
Trump’s move followed a week after he announced that the US had agreed to purchase diesel from Russia to help lower global energy prices. The Treasury Department’s Office of Foreign Assets Control issued a general license through April, permitting the sale and import of Russian diesel. Under this arrangement, Russia would supply hundreds of thousands of tons of diesel to both US and global markets. Without the waiver, the law would have mandated tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged notably this year, with the US national average reaching a record $5.88 per gallon in September. Expectations of increased Russian diesel supplies also affected oil markets last week, as the dollar retreated from an 18-month high. Earlier in the week, senators Mitch McConnell, Thom Tillis, Susan Collins, and John Cornyn urged Trump to rescind the diesel deal. This waiver marks the second instance in two weeks where Trump has bypassed Russia sanctions. Americans will vote in the midterm elections on November 3.