Dalal Street Slumps on 500% US Tariff Threat: Gokaldas, Avanti Among Top Losers.
Export-oriented stocks, particularly in textiles and seafood, faced heavy selling pressure on January 8 after US President Donald Trump endorsed a bipartisan sanctions bill proposing a steep 500% tariff on countries continuing trade with Russia, including India.
Gokaldas Exports fell nearly 13% to ₹596.65, K.P.R. Mill slipped over 2%, and Pearl Global Industries dropped around 6%. In the seafood segment, Apex Frozen Foods declined more than 6%, while Avanti Feeds lost almost 7%. The sharp correction reflects investor concerns over these companies’ dependence on the US market.
US Tariff Threat Explained
Republican Senator Lindsey Graham said the bill would give the US leverage against countries “fueling Putin’s war machine” through purchases of discounted Russian oil. The legislation, backed by Trump, could come up for a bipartisan vote as early as next week.
The proposed Sanctioning of Russia Act 2025 also seeks to penalize individuals and entities and raise duties on all goods and services imported from Russia to a minimum of 500%. China, India, and Brazil were identified as potential targets due to their ongoing Russian oil imports.
Trump recently remarked, “I have a very good relationship with PM Modi, but he is not happy with me as India is paying high tariffs. But now they have reduced it very substantially, buying oil from Russia.”
India, however, has rejected claims that Prime Minister Narendra Modi promised to stop buying Russian oil, emphasizing that energy purchases are guided by national interest and energy security.
Market Implications
Investors are worried that if the bill passes, Indian exporters earning a significant portion of revenue from the US could face severe tariffs, disrupting trade and profit margins. The development adds uncertainty to the long-pending India–US trade dialogue, which has yet to yield a comprehensive deal despite multiple negotiation rounds.
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