India Exporters Hit as US Tariffs on Russia Extend to Buyers, Weighing Textiles and Seafood

Shares of several Indian export companies slide sharply in Thursday's trade, as investors react to reports that a proposed 500% U.S. tariff on Russia may extend to countries buying Russian oil, including India. Textile and seafood exporters see the steepest declines, reflecting heavy dependence on the American market.

The sell-off hits firms already weakened by earlier U.S. tariff moves. Since August 2025, Indian goods entering the U.S. face a 50% tariff, including a 25% punitive charge linked to imports of discounted Russian crude. That earlier step has already damaged export earnings and raised concern among market participants.

Export-oriented companies with strong U.S. exposure suffer noticeable losses. Gokaldas Exports drops nearly 13 per cent, while K.P.R. Mills falls more than 2 per cent. Pearl Global Industries and Apex Frozen Foods each lose around 6 per cent. Avanti Feeds sheds about 7 per cent, highlighting focused pressure on textiles and shrimp.

Key names such as Gokaldas Exports and Avanti Feeds rely substantially on sales to American buyers. Both counters have already lost more than a third of their market value since the August 2025 tariffs. That erosion signals how prolonged trade friction has weighed on investor sentiment and corporate profitability in these segments.

The damage is not limited to textiles and seafood. Industries that export heavily, including gems, jewellery, and other labour-intensive products, see pronounced declines in U.S. orders. Even sectors not directly targeted by the tariffs, such as cellphones and pharmaceutical drugs, experience weaker demand, pointing to wider trade headwinds.

Company	Sector	Approx. share move on Thursday
Gokaldas Exports	Textiles	-13%
K.P.R. Mills	Textiles	More than -2%
Pearl Global Industries	Textiles	Around -6%
Apex Frozen Foods	Shrimp / Seafood	Around -6%
Avanti Feeds	Shrimp / Seafood	-7%

According to the U.S. Congress website, the proposed Sanctioning of Russia Act 2025 sets out broad penalties on entities associated with Russia. Its headline element is a move to lift import duties on Russian goods and services to at least 500 per cent of their assessed value.

Senator Lindsey Graham, who leads the push for the bill, indicates that the 500% tariff on Russia is designed to empower a future Trump administration to act against countries that continue buying discounted Russian oil. Graham says the measure would give Trump "tremendous leverage" over India, China, and Brazil.

Senator Graham mentions that the bill could reach the floor for a bipartisan vote as early as next week. If lawmakers pass it, the legislation would grant Trump wide latitude to apply heavy tariffs and sanctions on countries seen as supporting Russian revenue streams through energy purchases.

US tariff on India, Trump’s comments and India’s response

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 also claimed that India had curtailed imports of Russian oil "very substantially", although Trump argued that additional actions were still required. The comments link India’s energy decisions directly with the broader debate on sanctions and tariffs aimed at Russia and its trading partners.

The Indian government rejects Trump’s assertion that Prime Minister Narendra Modi promised to halt Russian oil purchases. Officials state that no such assurance or discussion is recorded. New Delhi maintains that energy policy is driven by national interest and affordability, especially when global fuel prices remain volatile and domestic inflation management is critical.

Discounted Russian crude has helped India contain import costs and stabilise domestic fuel prices. Policymakers repeatedly explain that continued sourcing from Russia supports budget management and shields consumers. This stance sits alongside efforts to keep trade relations open with Western partners, even as tariff-related disputes intensify.

US tariff on India and export diversification efforts

The earlier 50% U.S. tariff has pushed India’s export sector into a difficult phase. Between May and September 2025, India’s shipments to the American market fall by about 37.5%. The steepest drop appears in export-heavy, labour-oriented sectors made up largely of small and medium-sized enterprises.

After the tariff hike, exporters report order cancellations and reduced shipment volumes. Shrimp producers and textile companies disclose significant losses as buyers scale back. The impact on other segments, including cellphones and pharmaceutical products, signals a general cooling of U.S. demand, beyond the categories directly subject to higher duties.

With exposure to the U.S. market now a clear vulnerability, India is trying to diversify export destinations. Companies and policymakers look more towards Europe, East Asia, and South Asia. The strategy aims to reduce reliance on one major market, while managing the continuing tariff risks that link Russian oil purchases with future U.S. trade actions.