WASHINGTON: US President Donald Trump has signed an executive order scrapping a proposed tariff of up to 100 percent on major importers of Russian crude oil and natural gas, a decision that eases pressure on India, China and other countries. The order took effect immediately. Trump said it was taken to protect US national interests.
The waiver comes days after Washington reached an understanding with Russian President Vladimir Putin aimed at ensuring uninterrupted diesel supplies to global markets and to US domestic consumers.
The tariffs were authorized under the Lindsey O. Graham Sanctioning Russia and Iran Act, which Congress passed last month and Trump signed. The law empowered the president to impose penalty duties of up to 100 percent on goods from five major countries that buy large volumes of Russian oil and gas, with the tariffs due to take effect within 30 days of enactment.
Trump invoked Section 115 of the same law, which allows the president to waive sanctions or tariffs when he deems it necessary in the US domestic, economic or national interest. He used the authority to cancel the duties that would have applied under Sections 112 and 113. In a report to Congress, he described the exemptions as critical to US national interests and economic stability. Other countries that have continued to back Russia despite US sanctions are also expected to benefit.
The announcement came as Secretary of State Marco Rubio was on an official visit to India. External Affairs Minister S. Jaishankar had met Rubio last month on the sidelines of the UN General Assembly in New York. The decision is being seen as a result of sustained Indian diplomatic engagement.
For India, the waiver removes a significant threat to its energy market, allowing continued imports of discounted Russian crude, which helps keep petrol and diesel prices in check.