WASHINGTON / AsiaWire.IO / – On October 16, President Donald Trump decided to suspend key US sanctions and tariffs related to Russia, just days before their scheduled implementation. These measures fall under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was signed into law by Trump last month. In a White House-issued executive order, Trump stated that this suspension aligned with the national interests of the United States. The sanctions had been set to activate on October 18, but the order did not provide additional reasoning for the decision.
The legislation would have levied tariffs up to 100% on all goods imported into the US from the five primary countries supplying Russian crude oil or natural gas. It would have also imposed the same tariffs on 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 circumventing sanctions. The law authorized tariffs of up to 500% on all Russian products, and sanctions on foreign banks with significant dealings with Russian state-owned banks were also waived.
According to the order, the suspension will stay in effect until Trump or his senior officials determine that further action is necessary. Existing sanctions previously enacted through executive order remain unaffected. The Russia-related provisions of the law are set to expire in 2031. On Saturday, the White House issued a statement affirming that the law grants the president additional authority to promote peace. Spokesperson Taylor Rogers explained that enforcing the sanctions at this moment could hinder negotiations, emphasizing that the president can exercise these powers at any time.
Graham Act Secured Broad Congressional Support
The late Senator Lindsey Graham, a Republican from South Carolina, was the main supporter of this legislation in Congress. Following his sudden death in July, lawmakers from both parties rallied behind the bill as a tribute to his legacy. The Senate approved the measure with an 86-11 vote on August 7, while the House of Representatives approved the final version by a vote of 262-159 on September 16. President Trump signed the law on September 18. The law targets Russian officials, oligarchs, banks, and the shadow fleet of tankers used to bypass sanctions.
The decision to waive sanctions faced criticism from members of both parties. Republican Senator Thom Tillis of North Carolina called the move beyond irresponsible, while Senator John Cornyn of Texas stated that Graham would be appalled by it. Democratic Senator Chuck Schumer of New York described the arrangement with Moscow as a deal with the devil. In contrast, Republican Representative Thomas Massie, who opposed the bill, welcomed the waiver. Ukrainian President Volodymyr Zelenskyy argued that the move benefits Russia and does not contribute to ending the war.
Russian Diesel Deal Influences Energy Strategy
The president’s decision came just a week after he announced that the US had agreed to purchase diesel from Russia to help lower global energy prices. 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 agreement, Russia will supply hundreds of thousands of tons of diesel to US and international markets. Without the waiver, the law would have mandated tariffs on Russian petroleum products and sanctions on ships transporting them.
Diesel prices have surged significantly this year, with the US national average reaching a record $5.88 per gallon in September. Expectations of increased Russian diesel imports also impacted oil markets last week, especially as the dollar retreated from an 18-month peak. 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 instance in two weeks where Trump has temporarily set aside Russia sanctions. The upcoming midterm elections are scheduled for November 3, with voters heading to the polls nationwide.