Trump waives Graham Act tariffs on Russia amid diesel row

President Donald Trump has waived the tariffs and many of the sanctions required by a new Russia sanctions law he signed last month, Bloomberg Tax reported. The law's measures had complicated his effort to bring down diesel prices before the midterm elections. The waiver came on Friday, Oct. 16. Earlier that day, a bipartisan group of House members introduced a bill to block his diesel deal with Moscow, and a day before that, 22 lawmakers had asked him to drop it.news.bloombergtax.com

"I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act," Trump wrote. He said he had told Congress that the waiver serves the national interest, according to Bloomberg Tax.news.bloombergtax.com

What the order waives

The executive order relies on Section 115 of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. It waives the duties in Sections 112 and 113, which call for tariffs of up to 500% on Russian goods and up to 100% on goods from the biggest buyers of Russian energy, The Economic Times reported. Sanctions imposed under earlier executive orders stay in place. The order also tells the U.S. Trade Representative to track purchases of Russian oil and attempts to evade sanctions, and Trump kept the power to restore the measures. The first deadlines under the law fall on Oct. 18. Trump signed the law on Sept. 18, Alaska's News Source noted.economictimes.com+1

Lawmakers push back

On Oct. 15, a bipartisan letter led by Rep. Jim Costa and signed by 22 House members asked Trump to revoke the waiver easing energy sanctions and to enforce the Graham law in full. They asked for written answers by Oct. 18, LIGA.net reported. Signers included Republicans Michael McCaul, Brian Fitzpatrick and Don Bacon. One of their questions was how the administration squares the Treasury license with "the existing statutory ban on Russian energy imports," Newsweek reported.news.liga.net+1

On Friday, Rep. Gregory Meeks introduced the Prohibit Corrupt Russia Oil Deals Act. The bill would reverse the Treasury license and bar the U.S. International Development Finance Corp. from investing in Russian energy, Politico reported. Bacon was its only Republican co-sponsor. "This deal will not reduce costs for the American people," Meeks said, Fakti.bg reported.fakti.bg+1

The legal conflict

On Oct. 9, the Treasury's Office of Foreign Assets Control issued General License 135. It allows the sale and import of Russian diesel into the United States through April 7, 2027. Critics say this conflicts with the 2022 Ending Importation of Russian Oil Act. That law lets the ban end only after the president certifies that Russia has reached a peace agreement accepted by Ukraine, consults Congress and waits through a 90-day review period, Rep. Lloyd Doggett said. Military.com notes that the license does not repeal that statutory ban.military.com+2

Trump says Russia will supply more than 300,000 metric tons of diesel right away, with more shipments to follow. The International Energy Agency warned that easing Russian export limits is unlikely to change global supply much, and Ukraine has resumed drone strikes on Russian refineries, Military.com reported.military.com