WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump chose to waive key U.S. sanctions and tariffs related to Russia, just days before they were scheduled to take effect. 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 executive order, Trump stated that the waiver aligns with the national interests of the United States. The penalties were set to begin on October 18. The order did not provide additional details explaining the decision.
This legislation would have slapped tariffs of up to 100% on all goods entering the U.S. from the five largest importers of Russian crude oil or natural gas. The same tariffs would have applied to any country knowingly purchasing Russian oil or gas 30 days after the law’s enactment. It also targeted the top five nations aiding Russia in sanctions evasion. Furthermore, the law permitted tariffs of up to 500% on all Russian goods. Sanctions on foreign banks conducting significant business with Russian state-owned banks were also waived.
The White House order stated that the waiver will stay in effect until Trump or his top officials determine that additional action is necessary. Sanctions imposed earlier through executive orders remain unaffected. The law’s provisions concerning Russia are scheduled to expire in 2031. A White House statement on Saturday emphasized that the law grants the president extra authority to pursue peace. Spokesperson Taylor Rogers mentioned that enforcing sanctions now could hinder negotiations. Rogers added that the president can exercise these authorities at any time.
Graham Act Secured Congressional Approval by Wide Margins
The late Senator Lindsey Graham, a Republican from South Carolina, was the main supporter of the legislation in Congress. After his sudden death in July, legislators from both parties rallied behind the bill to honor his legacy. The Senate approved the measure with an 86-11 vote on August 7. The House passed the final version with 262-159 votes on September 16. Trump signed the act into law on September 18. The law targets Russian officials and oligarchs, banks, and the shadow fleet of tankers used to dodge sanctions.
The decision to waive sanctions drew criticism from members of both parties. Republican Senator Thom Tillis of North Carolina called the move irresponsible. Senator John Cornyn of Texas said Graham would be appalled by the choice. Democratic Senator Chuck Schumer of New York called the arrangement with Moscow a deal with the devil. Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy stated that the move benefits Russia and does not help end the war.
Russian Diesel Agreement Influences Energy Strategies
Trump’s decision followed a week after he announced the U.S. had agreed to buy diesel from Russia. This move aims to help lower global energy prices. The Treasury Department’s Office of Foreign Assets Control issued a general license through April for the sale and import of Russian diesel. Under this deal, Russia will supply hundreds of thousands of tons of diesel to the U.S. 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 this year, reaching a record $5.88 per gallon in September, according to the Columbus Inquirer. Expectations of more Russian diesel supplies influenced 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 revoke the diesel deal. This waiver marks the second time in two weeks that Trump has waived Russia sanctions. Americans will vote in the midterm elections on November 3.