Trump suspends Russia sanctions and tariffs despite protests in Congress
US President Donald Trump signed an executive order suspending part of the sanctions and tariffs against Russia set out in the Graham law. The move comes as Washington seeks lower diesel prices ahead of the midterm elections.
US President Donald Trump has signed an executive order suspending the application of some sanctions and customs tariffs against Russia that are required by the so-called Graham law. The legislation was drafted in response to Russia's full-scale invasion of Ukraine. According to Bloomberg, Washington is trying to bring down diesel prices before the US congressional midterm elections on 3 November.
What the order says
In the document, published on the White House website, Trump exempts Russia from tariffs set out in sections 112 and 113 of the law. He says he has submitted a certification to Congress that the exemption is in the national interest of the United States. The law lets the president use such a waiver mechanism.
The order formally sets the tariffs but halts their application, so Trump could impose them in future. The law called for 100% tariffs on goods from the five largest buyers of Russian oil and 500% tariffs on imports of Russian-origin energy. The deadline for introducing these measures was 18 October.
Link to diesel policy
The restrictions conflicted with Trump's plan, announced last week, to cooperate with Russian leader Vladimir Putin so that Russian diesel supplies reach the world market. According to Bloomberg, diesel prices remain at record highs. Suspending the sanctions also lets Washington avoid a possible clash with the biggest buyers of Russian energy: China, India and Turkey.
Resistance in Congress
Congress passed the bill on 17 September and Trump signed it on 19 September. The law also requires sanctions on key sectors of the Russian economy. On 9 October, the Office of Foreign Assets Control (OFAC) at the US Treasury issued General License No. 135, permitting transactions in Russian-origin diesel.
On 14 October, 12 senators from both parties sent Trump a letter calling the diesel arrangement a "betrayal of Ukraine" and demanding that the license be revoked. A similar appeal came from 22 members of the House of Representatives from the Democratic and Republican parties. The new decision could cause further discontent in Congress, including within the Republican Party.
