As a result of the waiver, the Graham Act provisions that required the imposition of duties on Russian products and products of countries that purchase Russian crude oil or natural gas currently are not being applied. The E.O. directed agency officials to monitor developments and recommend future actions.

Background

As outlined in our prior client alert, President Trump signed the Graham Act into law on September 18, 2026.  The Graham Act codified many existing sanctions against Russia and created additional authorities for the Administration to target Russia’s nuclear sector, shadow fleet, and sanctions evasion networks. The Graham Act also granted the President significant new authority to impose duties of up to 500% on products from Russia and up to 100% on products from countries that continue to purchase Russian-origin energy products or facilitate sanctions evasion. The Graham Act required the President to impose the prescribed sanctions and tariffs within 30 days of enactment. The E.O. issued waivers prior to that deadline.

Tariffs: Imposed and Waived

While the E.O. technically increased duties on goods from Russia by 500%, the President simultaneously invoked the Graham Act’s waiver authority, determining that waiver “is in the national interests of the United States.” Similarly, the E.O. waived the additional 100% duty on goods from: (1) the largest five importers of Russian crude oil and natural gas, “if the country knowingly makes new purchases of crude oil or natural gas that originated in {Russia} on or after October 18, 2026,” and (2) the top five facilitators of Russian oil sanctions evasion. As a result, no new tariffs imposed under the Graham Act are currently in effect. As discussed in our prior alert, if imposed, these duties would “stack” on top of other existing duties.

The E.O. directed the United States Trade Representative (“USTR”), in consultation with the Secretaries of State, the Treasury, and Energy and other officials designated by the USTR, to monitor countries’ importation and purchase of Russian crude oil and natural gas. The E.O. also directed those officials to regularly inform the President of relevant activity and to recommend further action, as appropriate.

Sanctions: Mandatory Actions Waived, Existing Programs Preserved

As with the Graham Act’s duty provisions, the President waived the mandatory sanctions imposed by the Graham Act in the national interest of the United States. The E.O. waived the application of the sanctions and restrictions under the Graham Act’s new mandatory sanctions architecture described in our prior alert, including measures directed at Russia’s nuclear sector, shadow fleet, foreign ports, financial institutions, and sanctions evasion networks. Under the E.O., the waivers remain in effect until the President lifts them or the Secretary of State determines that further action is appropriate.

The E.O. clarified that the waiver does not affect sanctions or other measures that were in effect before the Graham Act’s enactment under the executive orders issued to address the Russia-related national emergency. Thus, the E.O. waived the new sanctions that the Graham Act required the President to impose but did not alter the existing Russia sanctions landscape.

Delegation of Authority

The E.O. delegated the President’s functions and authorities under the Graham Act to various executive branch officials, including the USTR, and the Secretaries of Commerce, State, the Treasury, and Energy. Certain agencies must monitor countries’ importation and purchase of Russian crude oil and natural gas and countries’ sanctions evasion activity and promptly report to the President any circumstance that “might indicate the need for further action by the President, including with respect to the waivers.” Accordingly, although the waivers do not have a termination date, agency monitoring could lead to recommendations that the President terminate or modify the existing waivers.

Key Implications

• The President waived the requirement to impose new sanctions and duties on Russia and entities associated with the importation and purchase of Russian oil and gas and with the facilitation of Russia sanctions evasion.
• The waivers remain effective until the President or Secretary of State determines further action is appropriate, including on the recommendation of designated officials.
• Designated officials must monitor purchases of Russian oil and gas and Russia sanctions evasion and regularly report on such activities to the President, including any circumstance warranting modification of the actions taken, including the waivers.
• The E.O. imposed additional duties of 500% on Russia and 100% on certain other countries, which would become effective if the waivers are lifted. The countries potentially subject to the 100% duty have not been identified (but historic trade data suggest that China, India, and Türkiye would meet the requirements of this provision). Such duties would “stack” on top of existing duties.
• Companies should monitor future White House and federal agency actions modifying the waivers or taking other action pursuant to the Graham Act’s authority and requirements.