Trump’s Russia Sanctions Pause: How It Eases the 100% Tariff Threat on India and Lifts Trade Deal Hopes
New Delhi was about 24 hours away from a very expensive problem. Then Washington blinked.
In an executive order released late Friday, President Donald Trump waived several sanctions and tariffs linked to Russian exports, calling the pause a matter of US “national interest.” The relief came just a day before the measures were due to take effect. For Indian exporters and policymakers, it was a welcome reprieve.
What was India facing?
The trigger was a new US law. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed by Trump last month. It gave him a month to impose 100% tariffs on goods from the top five buyers of Russian crude: China, India, Slovakia, Hungary and Azerbaijan. Had a 100% tariff hit Indian goods, it would have come on top of existing duties.
Why this stings less after the past year
India has been here before. In August 2025, Washington raised tariffs on Indian goods to 50%, the highest among US trading partners, citing Delhi’s continued purchases of Russian oil. In February 2026, the extra 25% penalty was removed and the reciprocal tariff was cut to 18% under a US-India trade framework. Another round of punitive duties would have undone much of that repair work.
Relief, not resolution
Before anyone celebrates, the fine print matters. The waiver is not an India-specific exemption, and it suspends implementation without permanently removing the provisions, which leaves Trump the option to revive them. The US Trade Representative will keep monitoring countries’ purchases of Russian oil and gas and report back to the president. In other words, the threat has been shelved, not scrapped.
Where India’s Russian oil stands
Delhi’s position has long been careful. India has stressed the importance of diversified energy sourcing and has explained its Russian oil trade to American officials. Back in February, the Hindustan Times reported no immediate signs that India would cut its energy purchases from Russia to zero.
What it means for the trade deal
The waiver clears one obstacle in the path of a broader agreement, but it doesn’t settle the matter. The final commercial impact will depend on future US tariff decisions, the availability of Russian crude and the terms governing India’s trade with Washington. India has also been widening its options. It concluded a free trade agreement with the European Union, signed a deal with Oman and wrapped up talks with New Zealand.
The bottom line
This pause buys India time, and time is valuable in trade diplomacy. But a waiver that can be reversed by an executive order is a fragile foundation for exporters planning shipments months ahead. The real test will come when the monitoring reports land on Trump’s desk. Until then, Delhi has a breather, and a clear reminder of how quickly the tariff weather can change.