US Russia Sanctions Waiver Lifts India’s Tariff Threat

US President Donald Trump’s decision to lift sanctions, restrictions, and duties imposed through new Russia sanctions legislation has alleviated the immediate tariff risk for India, creating a positive for domestic stocks. But market experts suggest investors should not see the move as permanent, with scope for more developments after the mid-term elections. 

On Trump’s move, Madhavi Arora, chief economist at Emkay Global, termed IT sentimentally good for India. She said the US President has inconsistent messaging on Russia and India in his current term, leaving room for more moves after the mid-term elections. 

The waiver offers India a reprieve but does not rule out a long-term withdrawal of the United States’ tariff plans, said Bruce. The administration still has the option to reverse the decision, making it something for investors to watch.

Oil marketing firms (OMCs) may be among the top beneficiaries of reduced uncertainty, market expert Sunil Subramaniam added, as it will give companies better visibility on crude sourcing. However, the implications for earnings will depend on global oil prices, refining margins and the availability of cheap crude. 

Industries that are net exporters like IT, pharma, textiles, auto and auto-ancillaries may get a relief rally if the threat of further US tariffs starts to wind down. Capital goods, infrastructure, and energy-intensive manufacturing businesses may also benefit slightly from near-term trade-risk reduction. 

Trump signed a proclamation executive order citing the US national interest to waive the fee associated with the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 that would have penalized large consumers of Russian oil, such as India, with tariffs of up to 100%. The provisions were set to take effect on October 18. 

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The administration said it was initiating a 60-day review of the economic impact of the sanctions regime. This decision was taken as Washington tries to keep the cost of fuel down at home ahead of the mid-term elections in November. The US has also begun to bid for diesel supplies from Russia.