How India escaped Trump's Russia tariff threat

The Trump administration's threat of imposing a 500% tariff on countries buying Russian oil initially seemed formidable, but it evolved over time. Initially proposed by Republican Senator Lindsey Graham, the proposal aimed to coerce countries like India, China, and Brazil into reducing their purchases of Russian oil. The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, ultimately softened the proposed tariff, first to 100%, and then, through a temporary waiver, to no tariff at all.

This waiver provides India, China, and other major importers of Russian crude with a temporary reprieve from potential US tariffs, though it does not eliminate the broader legislative framework. The waiver allows the US to retain the option of reinstating the tariffs, should it deem it necessary for national interests. Despite the waiver, the move has faced criticism from some US lawmakers, who argue that suspending the sanctions undermines efforts to pressure Russia over its actions in Ukraine.