Dalal Street Slumps on 500% US Tariff Threat: Gokaldas, Avanti Lead Losses
Export-focused Indian stocks fell sharply on January 8 after US President Donald Trump cleared the way for a bipartisan sanctions bill proposing a 500% tariff on countries continuing trade with Russia—including India.
Gokaldas Exports plunged nearly 13% to ₹596.65, K.P.R. Mill dropped over 2%, and Pearl Global Industries fell around 6%. Seafood exporters were also hit: Apex Frozen Foods lost more than 6%, while Avanti Feeds declined almost 7%, reflecting concerns over heavy reliance on the US market.
What the US Bill Says
The Sanctioning of Russia Act 2025, supported by Trump, would allow the US to impose steep duties on nations buying discounted Russian oil, a move aimed at cutting funding to Moscow’s war efforts. Senator Lindsey Graham highlighted that China, India, and Brazil could be directly impacted. The bill could see a bipartisan vote as early as next week.
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, rejected claims of any promise to halt Russian oil imports, citing energy security and national interest.
Market Impact
The proposed tariffs have rattled markets, with investors worried about potential revenue and profit disruptions for companies heavily dependent on the US. This comes amid ongoing uncertainty in India–US trade talks, which have yet to produce a comprehensive deal despite multiple negotiation rounds.
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