Trump Waives Russia Energy Tariffs, Sanctions in Graham Law

(Bloomberg) -- President Donald Trump waived massive tariffs linked to Russian energy exports mandated in a law that he signed last month, as the measures complicated his push to lower diesel prices ahead of the US midterm elections.

Trump on Friday invoked a waiver clause under the law, which was championed by the late Senator Lindsey Graham as a way to punish Russia for its invasion of Ukraine.

"I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act. I have submitted to the Congress a certification that the issuance of such a waiver at this time is in the national interests of the United States," Trump said in an executive order.

The measure gave Trump 30 days to impose 100% tariffs on all goods from the top five buyers of Russian crude. It would also slap sanctions on numerous Russian entities and impose 500% tariffs on all US imports of Russian energy products. That one month deadline was set to expire on Oct. 18.

Those provisions conflict with his plan — announced last week — to work with Russian President Vladimir Putin to release the country's diesel supplies into global markets. Trump is seeking to lower US diesel prices that are hovering at record highs weeks before the Nov. 3 elections.

With assistance from Jennifer A. Dlouhy.