US President Donald Trump has suspended key provisions of a law that could impose tariffs of up to 100 per cent on goods from major buyers of Russian oil and gas, including India and China, to allow his administration 60 days to assess the economic consequences.
US Secretary of State Marco Rubio said on Saturday that the pause would give Washington time to evaluate the potential effects of the proposed measures on the global economy and the United States.
The provisions are contained in the Lindsey O. Graham Sanctioning Russia and Iran Act, which allows the US to impose additional duties on countries purchasing Russian-origin crude oil and natural gas.
Rubio said India’s continued dependence on Russian energy supplies was among the factors influencing the decision. Although New Delhi has diversified its energy sources, it still obtains a significant share of its supplies from Russia, making an immediate shift difficult.
He also described India as an important US ally, saying the administration needed time to determine how best to balance its energy needs and diplomatic relationship with Washington.
The proposed measures could have imposed tariffs of up to 100 per cent on imports from the five largest buyers of Russian-origin crude oil or natural gas. Separate provisions also allowed duties on Russian goods to rise to as much as 500 per cent.
Trump invoked Section 115 of the Act to grant the waiver, stating that it was in the national interest of the United States. The decision temporarily puts the relevant tariff provisions on hold while officials review their possible consequences.
Rubio said growing uncertainty in global energy markets had also contributed to the decision. He pointed to conflicts involving Iran, the Houthi militia and Saudi Arabia, alongside the Russia-Ukraine war, which has affected energy infrastructure and contributed to price pressures.
The US administration is expected to use the 60-day period to examine how the proposed tariffs and sanctions could affect energy supplies, international trade and domestic economic conditions.
The development comes ahead of Rubio’s planned visit to India later this month, including a stop in Jamnagar, home to one of the world’s largest oil-refining complexes.
The waiver also follows Trump’s announcement of a diesel supply arrangement with Russia. Under the reported deal, Russia would supply more than 300,000 tonnes of diesel immediately, followed by another 500,000 tonnes in November and a further one million tonnes thereafter.
The suspension does not amount to a permanent cancellation of the proposed measures. Instead, it gives the administration additional time to assess the economic and geopolitical implications before deciding on its next steps.
