What is the Sanctioning Russia Act of 2025?

It's a US Bill proposing a minimum 500% tariff on imports from countries that knowingly trade Russian oil or uranium.

Which Indian sectors are most affected by the US tariff threat?

Textile, apparel, seafood, and drug manufacturers are among the most impacted Indian export sectors.

How does Donald Trump's tariff decision affect the US-India trade deal?

The proposed tariffs have significantly dampened expectations for a US-India trade agreement, causing investor concern.

Home / Business and Economy / Trump's 500% Tariff Threat Rattles Indian Exporters

Trump's 500% Tariff Threat Rattles Indian Exporters

9 Jan

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Summary

US Bill proposes 500% tariffs on imports from countries buying Russian oil.
Indian exporters' shares, particularly in textiles and seafood, saw significant drops.
The Bill jeopardizes expectations for a US-India trade deal, impacting investor sentiment.

Trump's 500% Tariff Threat Rattles Indian Exporters

Shares of Indian exporters experienced a sharp decline following the US government's proposal of a new Bill allowing for 500% tariffs on imports. This potential levy, on top of existing tariffs, has triggered panic across export-oriented sectors like textiles, apparel, seafood, and pharmaceuticals. Companies such as Gokaldas Exports and Avanti Feeds saw their stock values fall considerably on Thursday.

The proposed "Sanctioning Russia Act of 2025" mandates a minimum 500% duty on goods and services from countries knowingly engaging with Russia for petroleum and uranium. This legislative development has significantly dimmed prospects for a US-India trade agreement, which investors had anticipated would boost the Indian equity market. Previous tariff hikes by Trump had already placed Indian stocks under pressure.