US News Wrap: Trump Backs 500% Tariff on India & Exits Solar Alliance

The news cycle coming out of the United States for Friday, January 9, 2026, is dominated by aggressive foreign policy moves that directly impact India’s economy, energy security, and citizens. From threatening massive tariffs to exiting India-led global bodies, the Trump administration is sending shockwaves through New Delhi.

Here is a detailed roundup of the top US news stories that every Indian needs to know today.

1. The 500% Tariff Threat on Russian Oil Buyers

The biggest story shaking the markets is President Donald Trump’s support for the “Sanctioning Russia Act of 2025.”

  • The News: Senator Lindsey Graham confirmed that President Trump has “greenlit” a bill that proposes a staggering 500% tariff on goods from countries that continue to buy discounted Russian oil.
  • Target: India, along with China and Brazil, was explicitly named as a target. India is currently the world’s largest buyer of seaborne Russian crude.+1
  • Impact: If passed by the US Congress next week, this could cripple India’s $120 billion export market to the US, making Indian textiles, gems, and IT services prohibitively expensive for American buyers.

2. US Exits India-Led International Solar Alliance (ISA)

In a major diplomatic snub, the US has initiated a mass withdrawal from international multilateral organizations.

  • The Move: A White House memorandum has ordered the US to exit 66 international bodies, labeling them “redundant.” This list includes the International Solar Alliance (ISA), a flagship initiative launched by Prime Minister Narendra Modi and France in 2015 to promote green energy.+1
  • Why It Matters: The US exit creates a funding vacuum and undermines India’s leadership in the Global South’s climate fight. Experts fear this may open the door for China to exert more influence in these forums.

3. Strict Visa Warning for Indian Students & Tourists

The US Embassy in India has issued a fresh, stern advisory for Indian nationals holding Student (F1) and Visitor (B1/B2) visas.

  • The Warning: Following a “zero-tolerance” immigration policy, the embassy stated that any violation of US laws—no matter how minor—will lead to immediate deportation and a permanent ban on future entry.
  • Specific Rules:
    • B1/B2 Holders: Cannot work remotely or accept any employment while in the US.
    • Students: Must maintain strict attendance and cannot work off-campus without authorization.
  • Context: This comes amidst high tensions after an ICE agent fatally shot a woman in Minneapolis, leading to heightened scrutiny of foreign nationals.

4. “Modi Didn’t Call”: Stalled Trade Deal Revealed

US Commerce Secretary Howard Lutnick has made a surprising revelation regarding the failed India-US trade deal.

  • The Claim: Speaking on a podcast, Lutnick claimed the deal fell through because Prime Minister Narendra Modi did not call President Trump to finalize it.
  • The Quote: “India was uncomfortable doing it… so Modi didn’t call,” Lutnick stated, adding that the US moved on to sign deals with Vietnam and the Philippines instead.
  • Significance: This revelation highlights a communication gap and suggests that personal equations between leaders are driving US trade policy more than ever.

What This Means for India

The combination of these four events paints a worrying picture.

  • Economic Pressure: The tariff threat is likely a negotiation tactic to force India to stop buying Russian oil.
  • Diplomatic Isolation: Exiting the ISA signals that the US is less interested in supporting India’s global initiatives.
  • Immigration Hurdles: Indians traveling to the US must be extra cautious, as the “margin for error” has been erased.

Frequently Asked Questions (FAQs)

Q1. Will the US really impose a 500% tariff on Indian goods?

The bill has support from President Trump but still needs to pass the US Senate. It is likely being used as “leverage” to force India to cut ties with Russia, but the threat is real.

Q2. Does the US exit from ISA affect India’s solar projects?

Directly, no. However, it affects the global funding and political weight of the alliance. Without US backing, attracting investment for solar projects in smaller African and Asian nations (a key ISA goal) becomes harder.

Q3. Can I work on a B1/B2 tourist visa in the US?

Absolutely not. The US Embassy has clarified that B1/B2 visas are strictly for tourism or business meetings. Any form of employment (even remote work for an Indian company while in the US) can lead to deportation

Q4. Why is the US targeting Indian students?

The US has implemented stricter border controls in 2026. The new advisory warns that students who skip classes or work illegally will face immediate visa revocation, unlike the lenient warnings given in the past.

Q5. Is the India-US relationship deteriorating?

Relations are currently under stress due to India’s neutral stance on Russia and the US’s aggressive “America First” economic policies. However, strategic defense ties remain strong.

Leave a Comment