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Trump waives Graham Act sanctions and duties days before they take effect

An October 16 executive order waives specified Russia-related measures under the new US law while directing continued monitoring of Russian energy purchases and sanctions evasion.

Donald Trump poses for an official portrait at the White House, with a U.S. flag behind him.
File photo: Donald Trump poses for an official portrait at the White House in Washington, D.C., on October 6, 2017. Shealeah Craighead — Shealah Craighead, Official White House Photo — Donald Trump official portrait (cropped) (resized and converted to WebP). Public domain.Image sourceImage licence: Public domain
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US President Donald Trump waived specified sanctions, restrictions and import duties under the Graham Act in an October 16 executive order issued in Washington, days before the measures were due to take effect. The decision changes how the new US law will be applied to Russian-related trade, while leaving monitoring duties in place.

The order waives duties under Sections 112 and 113 of the law. It also waives sanctions under Section 102(d) and lists further restrictions and sanctions provisions among those covered. Trump said he had submitted a written certification to Congress that the waiver was in the national interest, along with a report explaining its basis, as the law requires.

What the Graham Act waivers cover

Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act on September 18, according to the order. The law provides for sanctions on foreign persons, restrictions affecting individuals and duties on goods imported into the United States from Russia and certain other countries. Reuters reported that its tariff provisions could reach goods from major importers of Russian oil or gas and countries meeting specified sanctions-evasion criteria.

The waivers do not undo measures imposed under the earlier executive orders identified in Trump's order, including sanctions already in force before the Graham Act was enacted. The order therefore draws a distinction between the new law's waived provisions and existing Russia-related measures.

Russian energy purchases remain under monitoring

The order directs the US Trade Representative to monitor countries' purchases of Russian-origin crude oil and natural gas, as well as activity aimed at evading sanctions. The office is to report relevant findings and recommendations to the president, including which countries are among the five largest facilitators of Russian oil sanctions evasion.

It also provides for an additional 100% duty on goods from those five facilitators, subject to the law's stated exceptions and the waivers in the order. That provision sits alongside the broader waivers; the order itself does not establish which countries will be identified through the monitoring process.

Countries that buy Russian energy have a direct stake in how the law is applied. Reuters reported that India, one of the largest buyers of Russian oil, had raised concerns about the legislation. The order establishes the US administration's legal steps, but their effect on trade will depend on how its remaining provisions and monitoring are applied.

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