The United States has paused sanctions and tariff provisions that could have imposed duties of up to 100% on goods from India and other major importers of Russian crude oil and gas, as the Trump administration assesses the impact on global energy markets and the US economy.
US Secretary of State Marco Rubio said India’s energy requirements must be considered before tariffs or sanctions are imposed. He described India as an important ally and partner of the United States while explaining why the administration wants to use a 60-day period to study the consequences of the measures.
The provisions were linked to the Lindsey O. Graham Sanctioning Russia and Iran Act. The law could have allowed tariffs of up to 100% on goods entering the US from the five largest importers of Russian-origin crude oil or natural gas, a group that includes India and China.
“Countries like India have voluntarily diversified their energy portfolio, but are still getting a substantial amount of energy from Russia because it’s hard to pivot from one day to the next,” Rubio said, according to the Economic Times report. He added that India’s strategic relationship with the US was also being considered.
Rubio is scheduled to visit India later this month, including Jamnagar, home to one of the world’s largest refineries. The visit will bring attention to the relationship between India’s refining capacity, its crude sourcing choices and the wider geopolitical pressures affecting fuel supplies and prices.
The pause followed an order by US President Donald Trump invoking Section 115 of the Graham Act. Trump said he had submitted a certification to Congress stating that the waiver was in the national interest, along with a report explaining the basis for the decision.
The order waived duties under Sections 112 and 113 of the Act. Those provisions could have permitted duties of up to 500% on goods imported into the US from Russia and duties of up to 100% on goods from the five largest importers of Russian crude oil or natural gas.
Rubio also cited changing conditions in global energy markets, including the war between Russia and Ukraine, attacks by the Houthis and pressure around the Straits of Hormuz. He said damage to energy infrastructure and disruptions involving Saudi Arabia, Iran and Russia were affecting global prices and had to be considered before the measures were applied.
The administration’s decision also followed Trump’s announcement of a diesel arrangement with Russia. Under the terms described by Trump, Russia would immediately supply more than 300,000 tonnes of diesel fuel, followed by another 500,000 tonnes during November and 1 million tonnes immediately thereafter. The 60-day review period will determine how the US proceeds with the tariff and sanctions provisions.
