Key takeaways
- On October 16, the White House suspended new 100% tariffs that had been set to take effect on all imports from the five countries purchasing the most Russian oil and gas.
- The 100% tariffs were originally scheduled to be imposed under the recently passed Graham Act and were intended to sanction Russia by reducing demand for Russian oil and gas exports.
- Manufacturing leaders should closely monitor ongoing tariff and trade policy updates and map their supply chains to understand their costs and risk exposure.
Days before new 100% tariffs were set to take effect on five countries that are top importers of Russian oil and gas, the White House issued a waiver to suspend those tariffs for now. The tariffs were originally intended to sanction Russia by cutting international demand for its oil and gas exports.
What should manufacturing leaders know about this latest tariff development? Keep reading to find out.
The White House just paused 100% tariffs originally intended as Russia sanctions
On October 16, 2026, President Trump issued an executive order suspending implementation of 100% tariffs on the top five oil and natural gas importers from Russia until further notice. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 required the Trump administration to impose tariffs of up to 100% by October 18 or issue a waiver.
- Secretary Marco Rubio publicly indicated a review in sixty days of the waiver policy; however, the executive order does not specify a timeline.
- The presidential action imposes and then suspends the tariffs, which the executive order sets at 100%, the maximum level permitted under the Graham Act, which was signed on September 18, 2026.
- While the U.S. Government has not released an updated list, based on previous data, the oil and gas importers most likely to be affected include China, India and possibly members of the European Union.
- Were the tariffs to take effect, the 100% tariff would apply to all goods imported from each country, in addition to any other duty, fee or tax, including any Section 122, 201, 232 or 301 tariffs.
The Graham Act also directed the president to impose 500% tariffs on all imports from Russia. However, these tariffs have also been suspended under the waiver.
Active trade negotiations China and India appear to be playing a role here
The executive order waives the sanctions, restrictions and duties provided for in the Graham Act and states that the president has submitted to the U.S. Congress a certification that the waiver at this time is in the national interests of the United States. Secretary of State Marco Rubio stated on Sunday, October 18, that Washington was “very close” to finalizing a trade deal with India, a factor he said was taken into consideration when deciding to issue the waiver.
Washington and Beijing recently agreed to extend their trade truce to January 11, 2027. Known as the Busan Agreement, the economic and trade truce ran from November 10, 2025, for one year and called on the parties to pause further significant tariff escalation.
Watch for future developments, including the possible recurrence of these tariffs
The U.S. trade representative, in consultation with other senior executive branch officials, will monitor the importation and purchases by countries of crude oil and natural gas of Russian Federation origin, as well as the facilitation of Russian sanctions evasion by countries and regularly report to the president on those circumstances.
The tariff waivers will remain in “effect until such time as the President or the Secretary of State, in consultation with the Secretary of the Treasury and the Trade Representative, as appropriate, determine that further action is appropriate.”
Although the waivers currently prevent the 100% tariffs from taking effect immediately, passage of this law is a significant expansion by the U.S. Congress of a president’s trade authority. Should the administration continue the waivers, many observers expect White House negotiators to use the threat of possible tariffs under the Russia sanctions law to push their priorities in talks with India, China, the European Union and others.
Additional steps for manufacturing business leaders
The current tariff and trade policy landscape is complicated and uncertain. This makes it harder for manufacturing businesses to fully understand their costs while also putting additional pressure on margins.
Manufacturing business leaders should carefully assess their supply chains to get a clear cost picture. Leaders should also protect profitability by offsetting higher import prices with operational efficiencies, improved OEE rates and applicable tax incentives.
Assign someone on your leadership team to monitor ongoing tariff and trade developments and consider consulting an advisory firm for additional guidance here. An advisory firm that understands tariffs, trade policy and modern manufacturing businesses can help you navigate these issues more effectively.
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