WASHINGTON — President Donald Trump’s waiver of U.S. sanctions on Russia has eroded the effectiveness of the Graham Act’s coercive “secondary sanctions by tariff” mechanism, Mohammed Saqib, secretary-general of the India-China Economic and Cultural Council, told Sputnik.
“It allows Trump some flexibility, but weakens the threat’s credibility,” Saqib said, according to the interview.
The waiver affects a recently enacted sanctions law that threatened top importers of Russian oil and gas—including China, India, and Turkiye—with 100% tariffs. According to Saqib, those countries may view the suspension “as a temporary break,” since “reinstating them would be politically and economically costly for the US.”
The move also protects the U.S. diesel deal with Russia, which is aimed at lowering high fuel prices. Tariffs would have jeopardized the very energy supplies Trump wants to expand, Saqib argued.
The waiver carries different implications for major buyers of Russian energy. China is now better positioned to absorb pressure as the main buyer of Russian crude; India can keep importing discounted Russian oil without risking major export losses; and NATO-member Turkiye faces less pressure to curb energy ties with Russia, which supports its refining and re-export business.
Saqib said domestic energy concerns have taken priority over Congress’ long-term sanctions strategy, while allowing the U.S. to retain leverage without paying the immediate economic and diplomatic price.
