WASHINGTON / AsiaWire.IO / – On Friday, October 16, President Donald Trump suspended key US sanctions and tariffs related to Russia, just days before their scheduled implementation. These measures were enacted 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 suspension aligned with the national interests of the United States. The sanctions were set to begin on October 18. The order provided no additional reasoning for the decision.
The legislation would have imposed tariffs of up to 100% on all goods entering the US from the five largest importers of Russian crude oil or natural gas. The same tariffs would have applied to any country that knowingly purchased Russian oil or gas within 30 days of the law’s enactment. Additionally, it targeted the top five nations assisting Russia in evading sanctions. The law also allowed for tariffs of up to 500% on all Russian products. Sanctions against foreign banks conducting substantial business with Russian state-owned banks were also waived.
According to the executive order, the waiver will stay in effect until Trump or his senior officials decide otherwise. Existing sanctions imposed by earlier executive orders remain unaffected. The Russia-specific provisions of the law are scheduled to expire in 2031. On Saturday, the White House issued a statement saying that the law grants the president extra authority to seek peace. Spokesperson Taylor Rogers emphasized that enforcing sanctions now would hinder negotiations, adding that the president can exercise these powers at any moment.
Congress Overwhelmingly Approves Graham Act, Honoring Late Senator
The legislation was primarily championed in Congress by the late Senator Lindsey Graham, a Republican from South Carolina. After his sudden death in July, lawmakers from both parties united to support the bill as a tribute to his legacy. The Senate passed the legislation with an 86-11 vote on August 7. The House approved the final version by a 262-159 vote on September 16. Trump signed the bill into law on September 18. The law targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to sidestep sanctions.
The waiver faced criticism from members of both political parties. Republican Senator Thom Tillis of North Carolina labeled the move as beyond irresponsible. Senator John Cornyn of Texas stated that Graham would be dismayed by this 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 commented that the decision only benefits Russia and does nothing to stop the ongoing conflict.
Russia’s Diesel Deal Influences US Energy Strategy Amid Price Hikes
President Trump’s move came a week after he announced that the US had reached an agreement to purchase diesel from Russia, aiming to lower global energy costs. The Treasury Department’s Office of Foreign Assets Control issued a general license valid through April for the sale and import of Russian diesel. This deal would supply hundreds of thousands of tons of diesel to both US and international markets. Absent the waiver, the law would have mandated tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged this year, with the US average hitting a record $5.88 per gallon in September, according to Columbus Inquirer. Expectations of increased Russian diesel imports contributed to a decline in oil prices 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 occasion in two weeks where Trump has temporarily set aside Russia sanctions. Americans are set to vote in the midterm elections on November 3.