President Trump Waives Graham Act Tariffs on Russia and the Largest Buyers of Russian Oil and Gas

Late Friday, President Trump released an executive order, Implementing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (dated October 16), that puts the Act’s sweeping new Russia tariffs and sanctions on the books – and suspends all of them in the same document. Invoking the waiver authority in Section 115 of the Act, the order states: “I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act. I have submitted to the Congress a certification that the issuance of such a waiver at this time is in the national interests of the United States.”

Section 2 of the order formally increases rates of duty – 500 percent ad valorem on goods from the Russian Federation, 100 percent on goods from the five largest importers of Russian-origin crude oil and natural gas, and 100 percent on goods from the top five facilitators of Russian oil sanctions evasion – while Section 4 waives the application of every duty under the Act and the order, along with the Act’s new sanctions and restrictions. The waivers remain in effect until the President or the Secretary of State, in consultation with the Treasury Secretary and the U.S. Trade Representative, determines that further action is appropriate.

The Graham Act (22 U.S.C. 10802) was signed into law on September 18, 2026. Championed by the late Senator Lindsey Graham (R-SC), who died in July and had long argued that crushing sanctions were the key to bringing Moscow to the negotiating table, the Act codified and expanded existing Russia sanctions and gave the President 30 days – until October 18 – to impose its new duties.

Section 115 of the Act permits the President to waive any sanction, restriction, or duty by submitting to Congress a written certification that the waiver is in the national interests of the United States, together with a report explaining the basis for that certification. Friday’s order relies entirely on that provision, and the accompanying certification and report have been transmitted to Congress.

As of October 17, no tariffs under the Graham Act are being collected – not on Russian-origin goods, and not on goods from China, India, Turkey, or any other country that purchases Russian oil and gas. The duties now exist on paper, however the Section 4 waivers suspend all of them.

A few matters to highlight:

1. Because the duties are formally imposed rather than merely authorized, revoking the waiver would make them effective immediately – no new rulemaking, notice period, or further congressional action is required.

2. If ever applied, Graham Act duties stack on top of every other applicable duty, including antidumping and countervailing duties, Section 301, Section 232, and Sections 122 and 201 measures; for example, a good from a listed country facing a 25 percent Section 301 rate would face 125 percent or more.
3. The 100 percent top-importer duty is triggered only by purchases of Russian-origin crude oil or natural gas made knowingly on or after October 18, 2026 – purchases before that date do not count, so the five-country list remains prospective.

Not Waived: The order expressly preserves all sanctions and measures under the pre-existing Russia national-emergency executive orders (as continued on March 24, 2026), including every person previously designated under them. Existing tariffs on Chinese, Indian, Turkish, and Russian goods – Section 301, Section 232, reciprocal tariffs, and antidumping and countervailing duty orders – are likewise untouched.

The central question is whether – and how quickly – the waiver is lifted, in whole or in part; the order waives each provision separately, so partial reinstatement is certainly possible. A reasonable benchmark for further action could be the period following the 2026 Midterm Election, when the Administration may have greater flexibility to act without concerns about potential electoral implications.

We are also tracking USTR’s identification of the five largest importers and top five evasion facilitators, congressional efforts to force enforcement (including this week’s bipartisan letter and any follow-on legislation), the fate of the Administration’s Russian diesel arrangement, and how major purchasers of Russian energy respond.

Constitution Partners will continue to monitor implementation of the Graham Act and the status of the Section 115 waivers – including any move to reinstate the duties – and will provide updates as developments warrant.

Clients with questions about how these measures could affect their supply chains are encouraged to contact any member of our team.