President Donald Trump waived massive tariffs linked to Russian energy exports mandated in a law he signed last month, as the measures complicated his push to lower diesel prices ahead of the US midterm elections. **In an executive order dated October 16, Trump invoked a provision of the Lindsey O. Global Trade Research Initiative (GTRI) cautioned that the waiver offers temporary relief but leaves India uncertain about future US action. "But the relief is reversible. Washington can restore the tariffs anytime, leaving India and other buyers uncertain about future US action," GTRI said. The order stays in force until Trump or the secretary of state decides otherwise, providing flexibility for future policy adjustments. Trump announced the waiver just days before several provisions of the legislation were due to take effect, having signed the bill into law on September 18. The order implements the Graham Act while putting its tariff penalties on hold, setting out a 500 per cent tariff increase on Russian goods and 100 per cent additional duties on goods from major buyers of Russian oil making new purchases from October 18, 2026.
The US Department of Energy issued a request for proposals on Friday to exchange up to 17 million barrels of crude oil from its Strategic Petroleum Reserve (SPR) as Washington steps up efforts to ease pressure on fuel prices amid disruptions caused by the war with Iran. Under the exchange program, companies would borrow crude from the emergency stockpile and return oil at a later date, according to Reuters. This move forms part of a broader international effort announced in March to stabilise energy markets after the conflict disrupted oil supplies and sent prices higher. At the time, Washington committed to making 172 million barrels available from its strategic reserves as part of a coordinated International Energy Agency (IEA) initiative involving around 30 countries. The wider arrangement aimed to release 400 million barrels of emergency oil stocks worldwide.
The waiver provides significant relief for India, which was among the countries that expressed concerns about the legislation. Russia continues to be the single largest supplier of oil for India, with the country being one of the largest buyers of Russian crude globally. India, a major buyer of Russian crude, had faced potential exposure to the proposed 100% increase in duties on goods from the five largest importers of Russian-origin crude oil and natural gas if they knowingly made new purchases from October 18. External Affairs Minister S Jaishankar raised India's concerns over the act with US Secretary of State Marco Rubio in New York on September 23. If 100% tariffs had been imposed by the Trump administration, then it would have hit exporters as the US is the largest trading partner for India. Any sanctions may have rendered Russian crude economically unviable which would have added to the supply crunch at a time when Middle East tensions continue. The Trump administration's move to sign the sanctions bill last month was also hinted to have been weighing on the India-US trade deal talks, with some movement now expected.
Trump's Russia sanctions waiver has provided relief to Indian markets by removing an immediate source of uncertainty over the country's purchases of Russian oil. The Sensex and Nifty recorded their biggest weekly gains since the first week of April 2026, supported by a strong rebound in IT stocks. IT stocks were among the strongest drivers of the recovery, with Nifty IT index emerging as the best-performing sector last week, rising nearly 12% to record its biggest weekly gain in 18 years. The index gained another 4% on Friday to close at 31,924, its highest level in eight months. The rally added nearly $30 billion to the combined market capitalisation of the top 10 Indian IT companies during the week, with Tata Consultancy Services accounting for $13.3 billion of the increase, while Infosys added around $7 billion and HCL Technologies saw its market value rise by $5.3 billion.
Despite the potential relief from the US waiver, crude prices remain a significant concern for India, which depends heavily on imports to meet its oil requirements. Brent crude crossed $110 a barrel on Friday for the first time since May before closing at $109.86, with US benchmark West Texas Intermediate (WTI) settling above $101 a barrel. Brent rose more than 5% over the week, taking its weekly gain to around 10%. Prices climbed as Iran escalated attacks on vessels in the Strait of Hormuz, Yemen's Houthi rebels continued attacks affecting Saudi Arabia, and Ukraine vowed to continue targeting Russian energy infrastructure. The conflict has raised concerns over the security of energy supplies and shipping routes, with Russian crude exports standing at 9.4 million barrels per day for the week ended Wednesday, around 70% of pre-war levels, according to energy research firm Kpler. GTRI noted that Russia's share of Indian oil imports fell from 51 per cent in July to 44 per cent in August as India bought more from the US and UAE, despite higher prices.
