500% US Tariff on India? Gokaldas Exports, Avanti Feeds, Other Export-based Stocks Dip Up To 13%

The shares of export-based companies plunged on Thursday's trade after a report claimed that a 500% U.S. tariff bill on Russia may also affect India as it continues to buy Russian oil. The textile and shrimp stocks were the most affected, with Gokaldas Exports falling nearly 13 per cent, K.P.R. Mills by more than 2 percent, Pearl Global Industries and Apex Frozen Foods by around 6 per cent, and Avanti Feeds' shares by 7 per cent. These companies heavily rely on the U.S. market for a significant portion of their income.

500% US Tariff on India
Senator Lindsey Graham, who is leading the push for the bill, has hinted that the U.S.'s 500% tariff on Russia will allow President Trump to punish those countries that buy cheap Russian oil, fuelling Putin's war machine, adding that it would give Trump "tremendous leverage" over India, China, and Brazil.

According to the US Congress website, the Sanctioning of Russia Act 2025 includes wide-ranging penalties on individuals and companies linked to Russia. Its most striking clause is the plan to raise import duties on Russian goods and services to at least 500 per cent of their value.

What is Next
Senator Graham said the bill could be put to a bipartisan vote as early as next week. If passed, the legislation would give Trump broad authority to impose heavy tariffs and sanctions.

Speaking at the House GOP Member Retreat, Trump said, "I have a very good relationship with PM Modi, but he is not happy with me, as India is paying high tariffs." He added, "They wanted to make me happy, basically. Modi is a very good man; he is a good guy."
Trump claimed that India had reduced buying Russian oil "very substantially" but suggested that more steps were needed.

The Indian government has refuted Trump's claim, asserting that Prime Minister Narendra Modi never promised New Delhi would cease purchasing Russian oil. Officials clarified that no such conversation or commitment had taken place.

India has consistently explained that its energy policy is guided by national interest and affordability. With global fuel prices unstable, discounted Russian crude has helped India manage costs and keep domestic prices under control.

US Tariffs on India
India's export sector has been reeling under heavy U.S. sanctions since August 2025, when the U.S. imposed a 50% tariff, which included a 25% punitive tariff for importing cheap Russian oil. The Indian export sector suffered heavily thereafter. As a result, India's exports to the American market fell by about 37.5% within five months (May-September 2025). The drop has been most seen in industries that export a lot, such as textiles, gems, jewellery, and seafood, which are labor-oriented and mostly made up of small and medium-sized businesses.

After the tariff hike, order cancellations and fewer shipments were prevalent, and due to that, shrimp exporters and textile companies reported big losses. Even industries that weren't immediately affected by tariffs, including cellphones and drugs, also saw a drop in the U.S. demand. This was a sign of broader trade problems. Gokaldas Exports and Avanti Feeds are the two companies that rely substantially on the American market. They have already lost more than a third of their market value, showing how bad the crisis is.

India is trying to diversify its exports to Europe, East Asia, and South Asia, as the impact in the U.S. market is already clear.