Trump pauses 100% tariff on buyers of Russian oil, raising hopes of relief for India and China

US President Donald Trump had decided to impose a 100% tariff on the countries that buy the most oil and gas from Russia and Iran. It has now been reported that the decision has been put on hold for the time being. Trump made this clear through an executive order on Friday.

The order says exemptions are being given from several sanctions, restrictions and duties whose deadlines for coming into force were close. It is expected that this will bring relief to countries such as India and China, which buy crude oil from Russia to meet their energy needs.

The decision comes at a time when the US is discussing its strategy of increasing pressure on Russia and finding a resolution to the Ukraine war. Trump's move has created a new situation for the US trade action against countries that buy oil from Russia.

Here is the background. In the middle of September 2026, Trump signed the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026". After this, five countries in the world, including India, were dealt a major blow. Under the law, it was made mandatory to take strict economic measures against countries that buy oil or gas from Russia.

According to the proposal, goods coming into the US from the five biggest importers of Russian crude oil or gas were to face duties of up to 100%. The law also had a provision to target countries that continued to buy oil or gas from Russia even after it came into force. It also spoke of action against countries that help Russia evade sanctions.

Trump has now decided to waive some sanctions and duties under this law. In a certification sent to the US Congress, he has said that granting these concessions for the time being is in the national interest of the US. In the executive order too, he said the exemption was given on this basis. However, the order does not explain the reasons for the decision in detail.

This clearly shows that the US administration is currently taking a softer stance on imposing the proposed duties meant to pressure Russia. Earlier, several countries, including India, had expressed concern about the possible trade impact of this law on sanctions against Russia.

India and China are among the countries that buy large quantities of crude oil from Russia. Had the US imposed an additional duty of up to 100% on Indian goods, Indian exporters could have been hit hard. The proposed duty could have been levied on top of the existing US duties. However, the actual impact would have depended on which country and which specific products were affected.

Russian oil purchases have strained trade relations between India and the US before. In 2025, the Trump administration imposed an additional 25% duty over India's purchase of Russian crude oil. A 25% reciprocal tariff was imposed along with it. In February 2026, under the India-US trade framework, the additional duty was removed and the reciprocal tariff was reduced to 18%.