Morning Edition · Saturday, October 17, 2026Published at 1:06 AM EDT · New York
The executive order suspends 500% tariffs on Russian goods and 100% duties on large buyers of Russian oil and gas a week after Moscow agreed to supply diesel to the US, with gasoline prices up 34% from a year ago.

President Donald Trump signed an executive order on Friday that waives the main provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. He signed that law himself on September 18. According to Fox Business and The Hill, the order suspends 500% tariffs on imports from Russia and 100% duties on the largest buyers of Russian oil and gas. Both measures were due to take effect on Sunday. Trump wrote that the waiver "is in the national interests of the United States." Deutsche Welle and Russian state broadcaster RT both led their coverage with that quote.
The Financial Times ties the reprieve to a deal Washington made with Moscow to release Russian diesel. NBC News reports that the agreement lets Russia sell diesel to the US and on world markets, starting with 300,000 tons. The domestic pressure behind the move shows up in the data: the US Bureau of Labor Statistics said gasoline prices rose 9.1% in September alone, and CBS News put the annual rise at 34.2%, less than a month before the November midterm elections.
India gains the most directly. BBC News Hindi called the decision "a big relief for India just before the deadline" and noted that opposition to it may grow in the US. The law required tariffs of up to 100% on all goods from the five largest importers of Russian crude or gas. Senator Graham had named India and China, which together buy about 70% of Russian oil, gas and petroleum products, as the main targets. Indian outlet The Federal reported that the waiver comes just before Secretary of State Marco Rubio visits India.
Kyiv and members of Congress criticized the waiver. The Kyiv Independent placed it within what it called "growing Ukraine-US tensions." President Volodymyr Zelensky had already called the diesel deal "not fair and not honest," and Trump has blamed Ukraine's strikes on Russian refineries for the rise in diesel prices. Senator Richard Blumenthal, a co-sponsor of the law, called the waiver a "craven, cowardly action." Russian state media presented the waiver as proof that the "bone-crushing" sanctions had failed.
Part of a tracked trend
Sanctions Bend to Pump Prices
Each time high fuel prices threaten Washington's domestic politics, it trades temporary sanctions relief for Russian energy supply. Russian barrels regain Western market access step by step, and the deterrent value of US sanctions declines.
Russian fuel exporters gain, and so do Indian and Chinese refiners that no longer face 100% United States tariffs, while the White House gains if Russian diesel lowers pump prices before the November midterms.
Fox Business and NewsNation confirm the waiver. Two facts get less attention: according to a US official quoted by Axios, the diesel deal came after Kyiv turned down six US requests to stop its refinery strikes unilaterally, and India had resumed larger Russian purchases after the Iran war cut its Gulf supply.
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Synthesized from: Kyiv Independent · RT · Financial Times Markets · BBC News Hindi · Deutsche Welle
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What this means
The secondary-tariff clause was the only part of the law that could raise the cost of buying Russian crude for New Delhi and Beijing. Suspending it before it ever applied tells every buyer that Washington will drop the threat whenever gasoline prices get politically expensive. Russian export revenue, Indian refiners and Chinese importers gain. Ukraine and holders of sanctions-compliance risk premia lose. Markets had partly expected this after the diesel deal. What is new is that the waiver covers the whole statute, which leaves Congress's main lever empty. The 2018 waivers that let eight countries keep buying Iranian oil are the closest precedent: they were extended and then narrowed, but buyers had already learned to treat US energy sanctions as negotiable. The likelier outcome is that Russian barrels keep flowing to Asia at narrowing discounts through the winter, and that buyers rely more on non-dollar settlement because they now expect future US threats to be suspended. This read depends on gasoline staying high into the November elections. It would be proved wrong if Congress passed a veto-proof limit on the waiver authority, or if the Treasury designated a major Indian or Chinese refiner anyway.
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