Trump Backs 500% Russian Oil Tariff Bill, US Exits India-Led Solar Alliance | Quick Digest
US President Donald Trump has approved a bill threatening 500% tariffs on countries buying Russian oil, directly impacting India. Concurrently, the US formally withdrew from the India-led International Solar Alliance (ISA) and other global bodies, signaling significant shifts in US foreign policy and trade relations. These moves coincide with the new US Ambassador's arrival in India, whose priority is ending Russian oil imports.
Trump approves bill for 500% tariffs on Russian oil buyers, targeting India.
US formally withdraws from India-led International Solar Alliance.
New US Ambassador to India prioritizes ending India's Russian oil imports.
Bill aims to leverage economic pressure against nations funding Russia's war.
US exit from ISA part of broader 'America First' policy shift.
Developments place significant diplomatic and economic pressure on India.
The United States, under President Donald Trump, has initiated significant policy shifts directly impacting India and global energy dynamics. On January 8, 2026, President Trump approved a bipartisan "Sanctioning of Russia Act 2025" which proposes a sweeping 500% tariff on imports from countries, including India, China, and Brazil, that continue to purchase Russian oil, gas, uranium, and other exports. This bill, which could be voted on in the coming week, is intended to exert "tremendous leverage" to compel these nations to cease financing Russia's war against Ukraine. Senator Lindsey Graham stated that this legislation aims to punish countries "fueling Putin's war machine".
Simultaneously, the Trump administration has formally announced its withdrawal from the India-led International Solar Alliance (ISA) and 65 other international organizations. This decision, formalized through a presidential memorandum on January 7, 2026, aligns with the "America First" agenda, deeming these institutions "contrary to U.S. national interests". The ISA, headquartered in Gurugram, India, was a collaborative initiative aimed at mobilizing solar energy investments globally.
These developments coincide with the imminent arrival of U.S. Ambassador-designate Sergio Gor to Delhi, who is set to take charge on January 12, 2026. Gor has explicitly stated that ending India's imports of Russian oil is a "top priority" for him. The confluence of these actions—potential punitive tariffs on Russian oil imports and the US withdrawal from the ISA—places significant diplomatic and economic pressure on India's energy security and its evolving relationship with the United States. Indian officials have reportedly shared their concerns regarding the proposed tariffs with U.S. Senator Lindsey Graham. The implications for India's trade, energy policy, and geopolitical standing are substantial, marking a period of heightened scrutiny and potential friction in India-US ties.
Read the full story on Quick Digest