E-Paper
Trump waives some Russia-related sanctions that threatened 100% tariffs on India, China
Donald Trump's decision has been interpreted as a move to keep domestic energy prices low in the United States ahead of November’s crucial midterm elections.
Prefer HTon Google
US President Donald Trump announced that he would waive tariffs that could have targeted India and four nations for purchasing Russian oil and gas in an executive order unveiled on Friday, just a month after the House of Representatives passed an act giving him the power to levy up to 100% tariffs on the top 5 purchasers of Russian energy.
Following swiftly on the heels of a diesel supply deal with Moscow announced last week, Trump also waived a number of sanctions targeting Russia and its economic partners on national-interest grounds until further notice.
American leader’s decision has been interpreted as a move to keep domestic energy prices low in the United States ahead of November’s crucial midterm elections. Trump’s actions effectively negate the punitive provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act, which was signed into law in September.
Also Read | Billionaire Richard Branson accuses Trump of cosying up to Russia's Putin amid Zelenskyy feud
What Russia said
Russian presidential envoy Kirill Dmitriev on Saturday described Donald Trump's decision to waive a new package of sanctions against Russia as a "historic moment".
"The Trump administration's suspension of the Graham Act is an important and truly historic moment," Dmitriev, an envoy for Russian President Vladimir Putin, said on X.
“Instead of sanctions and confrontation, we need dialogue, mutually beneficial cooperation, and shared responsibility for global stability,” Dmitriev wrote.
The backlash
Several US lawmakers and politicians have accused Trump of “surrendering” to Vladimir Putin after he signed an executive order waiving sweeping sanctions and tariffs aimed at Russia’s energy revenues.
Senator Richard Blumenthal, who helped draft the Lindsey Graham Act along with late Senator Lindsey Graham, said Trump was turning his back on "the majority of Americans, their representatives in both houses of Congress, and our European allies.”
“These waivers have nothing to do with our national security, and everything to do with sucking up to Vladimir Putin. I hope my Republican colleagues will join me in condemning this craven, cowardly action," he wrote on X.
Republican Representative Don Bacon criticised Trump’s decision, saying the US President was “prolonging the war, not ending it”.
Democratic Representative Don Beyer called the move Trump’s “latest surrender to Putin”. He said it “defies clear congressional intent of legislation designed to punish Russia for its illegal war of aggression.”
“Trump has proven he will twist this law and abuse the powers it conferred on him, and while he has let the tariff powers lie for the moment, the law as written also empowers Trump to weaponise new trade authorities against our allies and trading partners,” he added.
California Governor Gavin Newsom also reacted to Trump’s decision, saying that “someone” was getting “paid by Putin” in response to a social media post about the move.
Democratic Representative Teresa Leger Fernandez said Trump was “Putin’s puppet” in her reaction to the decision.
What was the law
The act gave the US President legal authority to increase tariffs on Russian exports to the US by up to 500% and by up to 100% on the top five countries that help Russia evade oil sanctions. India, China, Azerbaijan, Slovakia, and Hungary were the five countries identified as the top purchasers of Russian energy, likely to be targeted by the act’s provisions.
The act also included punishing new sanctions targeting Russian financial institutions and their international partners in an effort to pressure Moscow into ending the Ukraine war. These sanctions have been waived on national interest grounds by Trump’s executive order on Friday.
The waivers follow a series of conciliatory moves toward Russia ahead of the midterm elections on November 3 in which Trump’s Republican Party is widely expected to perform poorly. Concerns about affordability, inflation, and the cost of living, driven in part by high domestic energy prices, are playing a key role in eroding voter support for President Trump.
Also Read | US-Russia diesel deal and the Ukraine war
Trump's diesel deal with Russia
On 9 October, Trump announced a deal with Russia that could see Moscow supply roughly 5 million tonnes of diesel to global energy markets over the coming months. The US Treasury issued a general license on the same day, allowing global buyers to purchase Russian diesel without sanctions until 7 April 2027.
“Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority..Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” Trump said on Truth Social after the announcement of the diesel deal.
The American leader has also repeatedly expressed frustration with Ukraine for military strikes on Russian oil refineries, which Washington has blamed for the increase in global energy prices.
Despite the waivers, Trump’s executive order also directs the US Trade Representative and several senior cabinet officials to monitor the import and purchase of Russian crude oil and natural gas, as well as the facilitation of Russian sanctions evasion by countries.
“The Trade Representative, in consultation with the Secretary of State, the Secretary of the Treasury, the Secretary of Energy, and any other senior executive branch official that the Trade Representative determines appropriate, shall promptly inform the President of any circumstance that, in his opinion, might indicate the need for further action by the President, including with respect to the waivers,” the executive order reads.
