Trump’s Russian Oil Tariff Order: How India’s Exemption Changes the Picture

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By S. JHA

Section 4 of the US order provides for waivers from specified duties and sanctions provisions, making the scope of the exemptions crucial to understanding the impact on India’s energy trade and relations with Washington.

New Delhi, October 17, 2026 — India’s position in the evolving US tariff framework targeting Russian energy trade hinges on the scope of the waivers provided under Section 4 of the order on implementation of the ‘The O. Lindsay Graham Sanctioning Russia and Iran Act 2026’, which sets out exemptions from specified duties, sanctions provisions and restrictions.

The order provides for a 500 per cent increase in the rate of duty on goods from Russia, subject to exceptions and waivers. It also provides for a 100 per cent increase in duties on goods from the five largest importers of Russian-origin crude oil and natural gas if they knowingly make new purchases from Russia on or after October 18, 2026.

However, Section 4 introduces important qualifications to the measures.

Under Section 4(a), the order waives the application of duties under Sections 112 and 113 of the Graham Act, following a certification to Congress that the waiver serves the national interests of the United States.

Section 4(b) waives specified sanctions provisions concerning foreign persons and restrictions, while Section 4(c) waives additional listed sanctions provisions and restrictions. The order states that the required certifications and reports to Congress have been submitted.

These provisions are central to interpreting the order’s reach. The existence of a waiver, however, does not automatically establish that every country or every transaction involving Russian oil is exempt from all the measures.

What the order means for India

For India, Russian crude has been an important component of its energy sourcing. Any US measures affecting purchases of Russian-origin oil could have implications for energy costs, refiners and the wider India-US trade relationship.

If India is covered by an applicable exemption or waiver, the scope and conditions of that relief will determine which tariff or sanctions provisions do not apply. The Section 4 does not expressly name India. But it’s widely interpreted that India will be the top beneficiary of the waiver from the scope of the sanctions.

The order has come ahead of the planned visit of US Secretary of the State Marco Rubio to India. Rubio, interestingly, is coming to Mumbai, India’s financial capital, while also visiting Jamnagar in Gujarat, which has the largest petro-chemical complex of Reliance Industries.

The order also has come close on heels of US President Donald Trump announcing plans to buy Russian diesel. With US-Iran conflict stuck in no resolution phase, the energy crisis in America is deepening ahead of the Mid-Term elections in which Republicans, per psephologists, are likely to lose in a big way.

The order also directs US officials to monitor purchases of Russian-origin oil and natural gas and activities that facilitate sanctions evasion. The US Trade Representative, working with other senior officials, is required to report to the President and recommend further action where appropriate.

India’s exemption, if confirmed in the accompanying official notification or a country-specific decision, would materially change the immediate implications of the order for its Russian oil imports. The precise terms of that exemption remain essential to assessing its impact on India’s energy security and trade relations with Washington.