Executive Order 14436: Understanding the Current Status of the Graham Act and What It Means for Importers

Signed into law on September 18, 2026, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 (the “Graham Act”) introduced severe tariff hikes and sweeping secondary sanctions targeting Russian commerce and global energy facilitators. However, on October 16, 2026, President Trump issued Executive Order 14436 (“Implementing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026”). This landmark executive action substantially shifts the near-term legal reality for U.S. importers. 

The core takeaway for U.S. importers is that while the Graham Act remains law, its most punishing tariff increases and primary/secondary sanctions have been suspended indefinitely via executive waivers. Under Section 115 of the Graham Act, Congress provided the Executive Branch with statutory authority to waive duties, sanctions, and restrictions upon certifying to Congress that doing so is in the national interest of the United States. In Executive Order 14436, the President formally invoked this waiver authority:

• 500% Duty Increase Waived: Section 2(a) outlines a 500% ad valorem duty increase on goods from the Russian Federation. However, Section 4(a) explicitly waives the application of these duties.
• 100% Secondary Tariff Waived: Section 2(b) and 2(c) authorize 100% ad valorem duty increases on goods imported from the top 5 foreign purchasers of Russian crude oil/natural gas and the top 5 facilitators of Russian oil sanctions evasion. These secondary duty increases have also been fully waived under Section 4(a).
• Sanctions & Restrictions Waived: Section 4(b) and 4(c) waive broad categories of foreign person sanctions and restrictions under key sections of the Graham Act (including sections 102 through 111, and 117).

Importers should avoid assuming it is “business as usual.” There are still several crucial changes that have not been waived by the Executive Order, and other factors at play that can heavily impact importers. One important fact is that existing Russia sanctions remain intact: Section 4(b) explicitly clarifies that the waiver does not affect any sanctions or measures previously enacted under existing Executive Orders addressing Russian national emergencies (such as E.O. 14024 and related OFAC regulations). Another important piece of information to keep in mind involves active interagency monitoring: Section 3 directs the United States Trade Representative (USTR) to continually monitor countries purchasing Russian oil/gas or facilitating sanctions evasion. The USTR is required to regularly inform the President and recommend immediate reinstatement of duties if circumstances shift. Finally, this act also involves discretionary revocation: per Section 4(d), these waivers remain in effect only until the President or Secretary of State determines that further action is appropriate.

For international traders and U.S. importers, Executive Order 14436 provides temporary relief from immediate cost spikes, but it introduces a distinct layer of regulatory uncertainty. Some of the most important points regarding the order include:

Temporary Reprieve from Exorbitant Tariff Spikes: 

Had E.O. 14436 not issued waivers, importers facing direct Russian imports would have seen duties soar by 500% ad valorem—a rate that would effectively shut down trade. Furthermore, U.S. importers sourcing goods from key intermediary trading hubs (such as China, India, or Turkey) faced the threat of 100% secondary tariffs if those nations were designated among the top purchasers or facilitators of Russian energy. For now, these punitive duties are off the table.

Heightened Supply Chain Volatility Risk:

Because the presidential waiver can be modified or revoked at any time without congressional action, importers face continuous legislative and executive risk. A sudden diplomatic fallout or shift in energy market monitoring could prompt the USTR to recommend pulling the waiver. If the waiver is revoked, 500% direct tariffs or 100% secondary tariffs could be triggered on short notice.

Layered Regulatory Complexity:

Sec. 2(d) of the Order explicitly notes that any duties under the Graham Act apply in addition to existing trade actions, including Section 301 tariffs, Section 232 duties, and Antidumping/Countervailing Duties (AD/CVD). Should a waiver be lifted, importers would face compounding duty liabilities that could quickly lead to customs entry rejections or substantial unpaid duty assessments.

Given the delicate framework created by the Graham Act and Executive Order 14436, it is advisable that importers proactively manage their legal risk. The first step should be to audit country of origin data and supply chains. Conduct thorough supply chain mapping to identify potential indirect exposures. Know whether your primary third-country suppliers rely heavily on Russian-origin inputs or are located in jurisdictions closely monitored by USTR for energy purchases. Next, importers should review contractual termination & tariff-shift clauses. Ensure commercial purchase agreements include clear force majeure, hardship, or tariff-reallocation clauses to protect your business if waivers are abruptly altered or revoked. Importers should also maintain strict OFAC/OFAC-adjacent diligence. Remember that the waiver applies specifically to new statutory provisions under the Graham Act, not core OFAC Specially Designated Nationals (SDN) lists or pre-existing executive orders. Continue rigorous counterparty and vessel screening. Importers should also model contingency duty scenarios. It can be highly beneficial to work with customs counsel to evaluate financial exposure under worst-case scenarios with regards to this act.

Navigating the intersection of trade policy, executive orders, and statutory sanctions requires real-time regulatory strategy. If your business imports goods with complex global supply chains or needs help assessing exposure under the Graham Act, contact Liang + Mooney PLLC today for personalized guidance tailored to your business.