Key Facts

- On Oct. 17, 2026 the President issued an executive order implementing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (the Graham Act) [1].

- The order waives all sanctions, restrictions, and duties that the Graham Act authorizes, after the President submitted a written certification to Congress stating the waiver is in the United States’ national interests [1].

- Section 2(a) of the order raises the ad valorem duty on **all** goods imported from the Russian Federation by **500 percent**, subject to the exceptions in section 114 of the Graham Act and any waivers issued in section 4 of the order [1].

- Section 2(b) adds a **100 percent** ad valorem duty on goods from the five largest importers of Russian crude oil and natural gas that **knowingly** purchase such supplies on or after Oct. 18, 2026, again subject to the same exceptions and waivers [1].

- Section 2(c) imposes a **100 percent** ad valorem duty on goods from the five top facilitators of Russian oil sanctions evasion, as defined in section 113(i) of the Graham Act, with the same carve‑out language [1].

- The United States Trade Representative (USTR), in consultation with the Secretaries of State, Treasury, Energy, and any other senior officials the USTR deems appropriate, must monitor the relevant imports, identify the entities covered by sections 2(b) and 2(c), and report regularly to the President [1].

Order Implements Graham Act Waiver

The Oct. 17, 2026 presidential action invokes the constitutional authority of the President, the statutory authority granted by the Graham Act (22 U.S.C. 10802 et seq.), and section 301 of title 3, United States Code [1]. Section 1 of the order restates that the Graham Act, signed into law on Sept. 18, 2026, provides for sanctions, restrictions, and duties against foreign persons and goods from the Russian Federation and certain other countries [1]. By invoking section 115 of the Graham Act, the President exercises the statutory power to waive any of those sanctions, restrictions, or duties, provided a written certification is delivered to Congress explaining why the waiver serves U.S. national interests [1]. The order confirms that such a certification has been submitted, thereby satisfying the statutory prerequisite for a waiver [1].

The waiver does **not** eliminate the President’s ability to impose new tariff measures; instead, it clears the way for the duties described in section 2 of the order. This creates a dual‑track approach: previously authorized punitive measures are suspended, while a new, higher tariff regime is activated.

Mechanics of New Duty Regime

### 500 percent ad valorem increase on all Russian goods (section 2(a))

The order commands a 500 percent ad valorem increase on the customs value of **every** good imported from the Russian Federation [1]. The language makes clear that this increase is **in addition** to any other duty, fee, tax, exaction, or charge that may already apply, including duties imposed under title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) [1]. The increase is subject to the exceptions listed in section 114 of the Graham Act and to any waivers the President may issue under section 4 of the order [1]. The order does not provide a detailed list of the entities or product categories that might qualify for those exceptions.

### 100 percent duty on the five largest importers of Russian crude oil and natural gas (section 2(b))

Section 2(b) targets the **five largest** importers of Russian crude oil and natural gas that **knowingly** purchase those supplies after Oct. 18, 2026 [1]. For goods originating from those importers, an additional 100 percent ad valorem duty is imposed, again subject to the same exception and waiver framework [1]. The order does not identify the specific countries or entities; it delegates that determination to the USTR, who must monitor import activity and provide recommendations to the President [1].

### 100 percent duty on the five top facilitators of Russian oil sanctions evasion (section 2(c))

Section 2(c) expands the 100 percent duty to goods from the **five top facilitators** of Russian oil sanctions evasion, as defined in section 113(i) of the Graham Act [1]. The definition of “facilitator” is contained in the Graham Act and includes entities that assist in circumventing existing oil sanctions. As with the other duties, the increase is subject to the exceptions in section 114 and any waivers issued under section 4 [1].

### Monitoring and reporting responsibilities

The order places the USTR at the center of implementation. The USTR must, in consultation with the Secretaries of State, Treasury, Energy, and any other senior officials the USTR deems appropriate, monitor:

1. **All imports of goods from the Russian Federation** to apply the 500 percent increase;

2. **Purchases of Russian crude oil and natural gas** by the five largest importing countries after Oct. 18, 2026, to trigger the 100 percent duty under section 2(b);

3. **Activities of entities that facilitate Russian oil sanctions evasion** to identify the five top facilitators for the 100 percent duty under section 2(c).

The order requires the USTR to **regularly inform the President** of any such activity and to **provide recommendations** for further action as provided for in section 3 of the order [1]. The record does not specify a fixed deadline for the first monitoring report; it only obligates the USTR to carry out the monitoring and reporting functions [1].

Impact on Trade and Evasion Networks

### Scope of the duty increase

The 500 percent ad valorem increase represents a five‑fold rise in the tariff rate applied to the customs value of Russian‑origin goods. Because the increase is additive to any existing duties, the total tariff burden on a given product could be substantially higher than the pre‑order rate. The order, however, does **not** quantify the exact effect on landed costs for importers or consumers, nor does it provide a formula for calculating the final duty amount beyond the percentage increase [1].

### Effect on Russian exporters and supply chains

The order does not address how Russian exporters or their foreign partners might respond to the higher duties. No language in the record discusses potential shifts in export destinations, changes to supply‑chain routing, or competitive assessments by foreign producers [1].

### Influence on oil‑importing countries and evasion facilitators

The 100 percent duty imposed on the five largest crude‑oil and natural‑gas importers and on the five top evasion facilitators adds a second layer of tariff on top of the baseline 500 percent increase. The order does not describe the intended policy effect of these additional duties, such as whether they are meant to deter continued reliance on Russian energy or to penalize facilitation of sanctions evasion [1]. It simply sets the statutory duty rates and leaves the determination of which entities fall within the targeted groups to the USTR’s monitoring process.

### Waivers and exceptions

Section 4 of the order authorizes the President to issue waivers that can exempt specific persons, entities, or goods from any of the increased duties. The order does not list any waivers at the time of issuance, nor does it provide a timetable for when such waivers might be issued [1]. Consequently, the practical impact of the duties will depend in part on future waiver decisions.

### Congressional oversight

The President’s certification that the waiver serves national interests has been submitted to Congress in accordance with section 115 of the Graham Act [1]. The order does not specify a date by which Congress must review the certification, nor does it outline any procedural steps for that review [1].

What to Watch

- **USTR monitoring reports** – The order requires the USTR to monitor imports and report to the President on the five largest Russian oil and gas importers and the five top facilitators of sanctions evasion. The record does not set a specific deadline for the first report; the timing will be determined by the USTR [1].

- **Waiver announcements** – Any waivers that exempt particular entities or products from the increased duties will be issued under section 4 of the order. No schedule for those waivers is provided in the record [1].

- **Congressional review of the certification** – The President’s written certification that the waiver is in the national interest has been submitted to Congress, but the order does not state when Congress will act on that certification [1].

- **Inter‑agency coordination** – The order mandates coordination among the Secretaries of State, Treasury, Energy, and other senior officials for monitoring and reporting. The record does not establish a timetable for inter‑agency briefings or for any future adjustments to the duty regime based on those briefings [1].

- **Potential regulatory guidance** – While the order itself sets the duty rates, implementing regulations or guidance from Customs and Border Protection may be needed to operationalize the new tariffs. Future guidance could clarify how the duties are calculated and applied.

The executive order therefore creates a significant new tariff framework targeting Russian‑origin goods, while preserving flexibility through waivers and ongoing monitoring. Its ultimate effect on trade flows, pricing, and compliance will hinge on how the USTR identifies the targeted importers and facilitators, how the President exercises waiver authority, and how Congress engages with the certification process.