Trump buys Russian diesel days before Graham Act tariff deadline hits India
Synopsis
Key Takeaways
US President Donald Trump's decision to purchase Russian diesel has drawn sharp bipartisan criticism, with American television anchors and political figures arguing it directly contradicts a sanctions law Trump himself signed last month — just one week before that law's deadline for sweeping tariffs that could affect India and other major buyers of Russian crude oil.
The Deal and the Contradiction
The US Treasury's Office of Foreign Assets Control issued General License 135 on Friday, 10 October 2026, authorising transactions involving Russian-origin diesel until April 2027. Trump has indicated Russia will initially supply more than 300,000 tonnes, rising to 500,000 tonnes in November and one million tonnes thereafter. The stated rationale is to counter what Trump has described as 'skyrocketing fuel costs.'
On CNN's State of the Union, host Jake Tapper noted the purchase amounted to six million barrels of diesel — 'barely enough to cover a day-and-a-half of US demand' — and was being made from Vladimir Putin despite Trump having signed legislation sanctioning precisely such purchases. On ABC's This Week, co-anchor Jonathan Karl said the deal 'appears to violate a law Congress passed shortly after the Russian invasion of Ukraine in 2022.' ABC also replayed a clip of Trump's September 2025 address to the UN General Assembly, in which he criticised European nations for buying Russian energy. 'They're buying oil and gas from Russia, while they're fighting Russia. It's embarrassing to them,' Trump said in the archived footage. Karl noted pointedly: 'Of course, the president announced on Friday that the US now plans to do exactly the same thing.'
What the Graham Act Actually Says
The law at the centre of the controversy is the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed by Trump on 18 September 2026 in memory of the late Senator Lindsey Graham. Section 113 of the Act requires the President, within 30 days of enactment, to raise duties to 'up to 100 per cent' on goods from countries that were among the five largest importers of Russian crude oil or natural gas in the preceding 12 months and that knowingly make new purchases on or after that deadline. Section 112 requires duties of up to 500 per cent, by the same date, on goods imported into the US from Russia — explicitly including 'petroleum products.'
That deadline falls on 18 October 2026, one week away. The law does provide a presidential waiver mechanism: Trump may waive any duty by certifying to Congress that doing so is in the US national interest. The legislation also states that nothing in it limits the Treasury's authority to issue new general licences — the instrument used to authorise the diesel trade. The administration has not publicly stated how it intends to apply either section.
What It Means for India and Other Major Oil Buyers
India, which has significantly expanded purchases of discounted Russian crude since 2022, is among the countries that could fall within the Act's crosshairs under Section 113. Should the White House not invoke a waiver, Indian goods entering the US could face duties of up to 100 per cent from 18 October. Other large buyers of Russian energy — including China and Turkey — face similar exposure. The administration's silence on implementation has left trade and diplomatic circles uncertain about Washington's next move.
Political Reactions: Bipartisan Dissent
Ukrainian President Volodymyr Zelensky told ABC that the diesel deal 'gives Putin money and he spends money only on this war.' Within the Republican Party itself, the deal exposed a rare split. House Majority Whip Tom Emmer, a Republican, defended it as 'another example of our president thinking out of the box.' Former New Jersey Governor Chris Christie, also a Republican, was sharply critical, calling his party's messaging 'malpractice' and characterising the deal as accepting it is 'OK to buy oil from a thug, KGB dictator in Russia that will use it to kill free Ukrainians.'
What Happens Next
All eyes now turn to the 18 October deadline. The administration must either invoke the presidential waiver, announce a specific implementation framework for both sections of the Act, or face legal and political exposure over an apparent conflict between executive action and a law the President personally signed. Congressional leaders from both parties are expected to press the White House for clarity this week. For India and other large Russian energy buyers, the next seven days carry significant trade-policy consequence.