WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump opted to suspend key US sanctions and tariffs related to Russia, just days before they were scheduled to come into force. These measures fall under 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 aligned with the national interests of the United States. The penalties had been set to begin on October 18, but no additional reasoning was provided in the order.
The legislation would have levied tariffs up to 100% on all imports from the five leading countries importing Russian crude oil or natural gas. A similar penalty was set to apply to any nation that knowingly purchased Russian oil or gas 30 days after the law’s enactment. It also targeted the top five nations assisting Russia in bypassing sanctions. Additionally, the law permitted tariffs as high as 500% on all Russian products. Sanctions on foreign banks engaging in substantial transactions with Russian state-owned banks were also waived.
The executive order specified that the waiver would stay in effect until Trump or his senior officials determine that further action is necessary. Existing sanctions imposed by previous executive orders remain unaffected. The law’s provisions concerning Russia are scheduled to expire in 2031. A White House statement issued Saturday indicated that the law grants the president extra authority to pursue peace. Spokesperson Taylor Rogers explained that enforcing the sanctions at this moment could hinder negotiations, adding that the president can exercise these powers at any time.
Graham Act received broad congressional approval
The late Senator Lindsey Graham, a Republican from South Carolina, was the principal supporter of the legislation in Congress. Following his sudden death in July, lawmakers from both political parties united behind the bill to honor his legacy. The Senate approved the measure 86-11 on August 7, while the House passed the final version 262-159 on September 16. President Trump signed the act into law on September 18. Its focus is on Russian officials, oligarchs, banks, and the shadow fleet of tankers used to sidestep sanctions.
The waiver attracted criticism from members of both parties. Republican Senator Thom Tillis of North Carolina called the move beyond irresponsible, and Senator John Cornyn of Texas said Graham would be appalled by the decision. Democratic Senator Chuck Schumer of New York described the arrangement with Moscow as a deal with the devil. Meanwhile, Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy stated that the decision only benefits Russia and does not contribute to ending the war.
Energy strategy influenced by Russian diesel agreement
Trump’s decision coincided with his recent announcement that the US would purchase diesel from Russia to help lower global energy costs. The Treasury Department’s Office of Foreign Assets Control issued a general license extending through April for the sale and import of Russian diesel. Under this arrangement, Russia would supply hundreds of thousands of tons of diesel to the US and international markets. Without the waiver, the law would have enforced tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged sharply this year, with the US national average reaching a record $5.88 per gallon in September. Expectations of increased Russian diesel supplies also influenced oil prices last week, especially as the dollar retreated from an 18-month high. Earlier this week, Senators Mitch McConnell, Thom Tillis, Susan Collins, and John Cornyn urged Trump to rescind the diesel deal. This waiver marks the second time in two weeks that Trump has set aside Russia sanctions. Americans will vote in the midterm elections on November 3.