Trump suspends 500% tariff increase on Russian goods, keeps existing sanctions
Key Facts
U.S. President Donald Trump suspended a 500% tariff increase on Russian goods and specified sanctions under the Graham Act in an executive order issued on 16 October 2026. The decision also waived other tariff increases targeting goods from countries that buy Russian energy and countries that facilitate evasion of sanctions on Russian oil. Trump informed Congress that granting the waiver at this time served the U.S. national interest, according to the text of the order published by the White House. The suspension is limited to measures covered by the waiver under the new law, while retaining sanctions already in place under previous executive orders concerning harmful Russian activities. The order thus kept earlier restrictions in force while suspending implementation of the new tariff increases and sanctions.
Specifically, the order provided for an increase in tariffs on goods imported from Russia equivalent to 500% of their value, then waived implementation of that increase. Goods from the top 5 importers of Russian crude oil and natural gas are subject, under the suspended measures, to a separate increase equivalent to 100% of their value. The targeting of these importers is conditional on their knowingly making new purchases of Russian-origin crude or gas, under the terms set out in the order. Another category includes a 100% increase on goods from the top 5 countries facilitating evasion of Russian oil sanctions, which was also suspended. The increase prescribed for Russian goods therefore differs from those targeting goods from countries buying energy or facilitating sanctions evasion.
Trump signed the Graham Act imposing sanctions on Russia and Iran on 18 September 2026, before issuing the executive order implementing it in October. According to a statement from Senator Richard Blumenthal's office, the sanctions authorized by the legislation covered Russian officials, wealthy and influential oligarchs and their family members. Their scope also extended to foreign persons, Russian banks and financial institutions, as well as Russia's shadow fleet. Blumenthal, who helped draft the law, criticized the decision to waive the sanctions authorized by Congress, saying: "These waivers have nothing to do with our national security." His position challenged the justification Trump presented to Congress, with the president citing the U.S. national interest as grounds for issuing the waiver at this time.
On energy, Trump announced a deal for Russian diesel supplies, according to the Associated Press's account of his announcement. The announced immediate shipment includes more than 300,000 tonnes of diesel, with additional volumes to follow according to the schedule outlined by the president. The announcement specified another shipment of 500,000 tonnes in November, followed by supplies totaling 1 million tonnes. Trump said the final volume would arrive "right after that," according to the agency's account of the announced supply sequence. In response to the deal to purchase and import Russian diesel, Representative Gregory Meeks introduced a bipartisan bill aimed at blocking its implementation.
Meeks' bill targets financing and licensing mechanisms linked to Russian energy, according to a statement on the legislative initiative from Democrats on the U.S. House Foreign Affairs Committee. The bill proposes barring the U.S. International Development Finance Corporation from investing in Russian energy as part of measures intended to obstruct the deal. The proposal also provides for revoking general licenses issued by the U.S. Treasury Department's Office of Foreign Assets Control and prohibiting future licenses. It would also require the Trump administration to impose sanctions on Russian energy, adding a sanctions requirement to the proposed restrictions on financing and licensing. These measures are contained in the bill introduced by Meeks, while the suspension of the new measures rests on the president's executive order under the Graham Act.
On implementation, the order tasked the U.S. Trade Representative with monitoring purchases of Russian energy, as well as countries' facilitation of evasion of sanctions on that energy. The mandate includes submitting periodic reports to the president on those purchases and activities, under the mechanism set out by the White House in the executive order. The waiver remains in effect until the president or the secretary of state, in consultation with relevant officials, determines that further action is appropriate. The new purchases targeted by the tariff condition for leading importers begin on 18 October 2026 and include knowing purchases of Russian crude oil or natural gas. The next date specified in the diesel supply announcement is November, when Trump announced an additional 500,000 tonnes would be supplied, followed by 1 million tonnes "right after that."