Key Facts

- President signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law on September 18, 2026 [1].

- The October 17, 2026 executive order raises the ad valorem duty on all goods from the Russian Federation by 500 percent, subject to waivers [1].

- An additional 100 percent ad valorem duty applies to goods from the five largest importers of Russian crude oil or natural gas that knowingly purchase such supplies after October 18, 2026 [1].

- A further 100 percent ad valorem duty targets goods from the five top facilitators of Russian oil sanctions evasion, as identified under the Graham Act [1].

- The President invoked Section 115 of the Graham Act to waive specified sanctions, restrictions, and duties, and submitted a certification to Congress stating the waiver serves U.S. national interests [1].

Presidential Order Details

On September 18, 2026, the President enacted the Lindsey O. Graham Sanctioning Russia and Iran Act (the “Graham Act”), establishing a statutory framework for sanctions, restrictions, and import duties aimed at the Russian Federation and other designated actors [1]. The Graham Act authorizes the President to impose targeted economic measures against foreign persons and to levy duties on goods entering the United States from designated sources [1].

In the executive order dated October 17, 2026, the President exercised that authority to modify the duty structure on Russian‑origin merchandise [1]. The order simultaneously invokes the waiver provision of Section 115, allowing the President to temporarily suspend specific sanctions, restrictions, or duties while providing Congress with a written certification that the waiver aligns with U.S. national interests [1]. The certification was submitted to Congress as required by the statute [1].

Section 115 expressly permits the President to waive any sanctions, restriction, or duty provision, provided a written certification explains the waiver’s alignment with national interests [1]. The current order states that a waiver is being applied to certain provisions, although the text does not enumerate the specific persons or entities exempted [1]. Future waivers would likewise require a new certification to Congress, as mandated by the Graham Act [1].

The duty schedule introduced by the order raises the ad valorem tariff on all goods imported from the Russian Federation by 500 percent, unless an exception under Section 114 or a waiver applies [1]. Additionally, the order imposes a supplemental 100 percent ad valorem duty on goods originating from the five largest importers of Russian crude oil or natural gas that knowingly acquire such supplies after October 18, 2026 [1]. A parallel 100 percent duty is also levied on goods from the five leading facilitators of Russian oil sanctions evasion, as defined in Section 113(i) of the Graham Act [1].

The United States Trade Representative (USTR), in consultation with the Secretaries of State, Treasury, Energy, and any other senior officials deemed appropriate, is tasked with monitoring import activities and reporting findings to the President [1]. All increased rates are to be applied in addition to any other duty, fee, tax, exaction, or charge applicable with respect to the good, including duties imposed under Title VII of the Tariff Act of 1930 [1].

Legal Mechanisms and Scope

The order rests on multiple statutory authorities, including the Constitution, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, and Section 301 of Title 3 of the United States Code [1]. Section 115 of the Graham Act provides the specific waiver mechanism, requiring a written certification to Congress that the waiver serves national interests, a step the President has completed [1]. The order’s duty provisions are implemented under the President’s power to determine and order tariff adjustments, as articulated in the opening clause of the document [1].

By coupling a waiver with substantial duty increases, the administration leverages both punitive and flexible tools within a single executive action [1]. The baseline 500 percent ad valorem duty applies uniformly to all imports from the Russian Federation, creating a multiplier effect on existing customs valuations [1]. Exceptions listed in Section 114 of the Graham Act and any waivers issued in Section 4 of the order can reduce or eliminate the increased rate for designated items or parties [1].

The supplemental 100 percent duty on the top five crude‑oil and natural‑gas importers triggers only if those countries knowingly purchase Russian energy after October 18, 2026, linking duty exposure to procurement behavior [1]. Similarly, the 100 percent duty on the top five facilitators of sanctions evasion is contingent upon the USTR’s identification of those facilitators, as defined in Section 113(i) [1]. All duties are additive to any pre‑existing tariffs, including those codified in the Tariff Act of 1930, ensuring that the financial burden compounds rather than replaces prior obligations [1].

Importers of Russian goods—whether U.S. companies or foreign firms operating in the United States—will face the highest tariff burden under the 500 percent increase, directly raising acquisition costs [1]. Foreign governments or state‑owned enterprises that rank among the five largest purchasers of Russian oil or gas risk an extra 100 percent duty on related imports, effectively penalizing continued reliance on Russian energy [1]. Entities identified as top facilitators of sanctions evasion will incur the additional 100 percent duty, targeting networks that assist Russia in circumventing existing restrictions [1]. Conversely, any foreign persons or entities covered by the waiver will avoid the heightened duties, preserving market access despite the broader tariff regime [1].

Practical Trade Impacts

The order establishes a tiered cost structure that differentiates between general Russian imports, strategic energy purchases, and sanction‑evasion activities, all within the statutory parameters set by the Graham Act [1]. Importers will need to recalculate landed costs in light of the 500 percent duty and any applicable supplemental surcharges [1].

The record does not address a specific grace period for compliance; therefore, the timing of enforcement will depend on how U.S. Customs and Border Protection interprets the order’s effective date provisions [1].

The record does not specify the process by which importers can determine eligibility for a waiver under Section 115, nor does it detail how such determinations will be communicated to affected parties [1].

If a country identified as one of the five largest importers of Russian crude oil or natural gas makes a purchase that the USTR deems “knowingly sourced” after October 18, 2026, the order mandates an additional 100 percent ad valorem duty on related goods entering the United States [1]. The record does not quantify how this surcharge interacts with the base 500 percent duty, nor does it state whether the combined effect would double the tariff burden for those items [1].

The order requires the USTR, in consultation with the Secretaries of State, Treasury, and Energy, to monitor the activities of countries and entities described above and to report findings to the President [1]. The record does not delineate the frequency of these reports, leaving the reporting cadence to the discretion of the USTR and the consulted agencies [1].

What to Watch

- **USTR Monitoring Reports** – The Trade Representative is mandated to track purchases of Russian energy by the five largest importers and to identify the top five facilitators of sanctions evasion. Future public reports will clarify which countries and entities are subject to the supplemental 100 percent duties.

- **Potential Waiver Extensions** – Section 115 allows the President to issue additional waivers. Monitoring for any new certifications submitted to Congress will be essential for businesses seeking relief from the heightened duties.

- **Customs Implementation Guidance** – U.S. Customs and Border Protection is expected to issue procedural guidance on how the 500 percent duty and supplemental surcharges are to be applied at the point of entry. Stakeholders should watch for any clarifying notices that may affect filing timelines.

- **Legislative Response** – Because the certification accompanying the waiver was submitted to Congress, legislators may scrutinize the justification and could propose amendments to the waiver authority or to the duty structure itself.

- **International Reaction** – The targeted duties on top energy importers and evasion facilitators may provoke diplomatic responses from the affected countries. Statements from foreign ministries could signal shifts in trade relationships or prompt retaliatory measures.

- **Supply‑Chain Adjustments** – Although the record does not address specific supply‑chain decisions, companies that source Russian inputs will need to evaluate the cost impact of the new duties and consider alternative sourcing strategies.

- **Legal Challenges** – Stakeholders may test the order’s provisions in court, particularly regarding the scope of the waivers and the definition of “knowingly” purchasing Russian energy. Litigation outcomes could alter the practical application of the duties.

The executive action represents a significant escalation in U.S. trade policy toward Russia, coupling sweeping tariff increases with targeted surcharges aimed at energy purchasers and evasion networks. Its ultimate effectiveness will depend on how the USTR’s monitoring, the issuance of waivers, and customs implementation evolve over the coming months.