The United States has temporarily waived new Russia-related sanctions and tariffs under the Graham Act while it weighs the economic consequences of putting them into effect. An executive order signed October 16 applies the waiver to duties on Russian goods, potential penalties affecting buyers of Russian energy and several sanctions provisions. Secretary of State Marco Rubio said on October 17 that the administration could use up to 60 days to review the effects of imposing the measures. That is a stated review period, not a deadline written into the order.

What the order changes

The White House order describes a 500% tariff on goods from Russia and potential 100% duties involving major importers of Russian oil and gas or facilitators of sanctions evasion. But its waiver section suspends application of the new duties and a series of sanctions and restrictions under the Graham Act. The order says the waivers remain in force until the president or designated officials determine that further action is appropriate. It does not specify an automatic restart date.

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The distinction matters for companies handling energy purchases and cross-border trade. The order directs the U.S. trade representative, alongside other agencies, to monitor Russian-origin oil and gas purchases and report circumstances that may warrant another decision. Rubio pointed to India as a U.S. partner that still relies heavily on Russian oil, according to Reuters. Businesses exposed to Russian energy or affected import routes therefore have a period of uncertainty rather than a settled timetable for new duties.

Review amid energy pressure

Rubio said the president wanted time to examine what the sanctions and tariffs would mean for both the global and U.S. economies. Reuters reported that elevated fuel prices and disruptions associated with the war involving Iran form part of the administration's backdrop. Rubio also discussed a separate U.S.-Russia diesel supply arrangement, which officials presented as a way to ease fuel-market pressure. The diesel arrangement is separate from the legal scope and duration of the Graham Act waiver.

The White House invoked the act's national-interest waiver authority and said it had sent Congress the required certification and explanation. Crucially, the October 16 order says it does not disturb Russia-related sanctions already in place under a separate executive-order framework. Describing the action as a removal of all U.S. sanctions on Russia would therefore be inaccurate. The waived provisions are specific to the newer Graham Act measures identified in the order.

What remains unresolved

The administration has not announced whether it will restore the waived measures, revise its approach or leave the waiver in place after the review. Nor does Rubio's statement establish a binding end date for the waiver. Any subsequent move could affect Russian exporters, countries importing Russian energy and U.S. firms trading with them, but the scale would depend on which provisions were activated and how agencies implemented them. Markets also cannot infer a precise tariff bill from the order alone, because the affected countries and goods depend on official determinations and the waiver currently prevents the new duties from applying. For now, the operative facts are the waiver itself, ongoing monitoring and a review that Rubio said may take as long as 60 days.

Sources

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