Export-oriented textile and shrimp stocks witnessed heavy selling pressure on January 8 after US President Donald Trump approved a bipartisan sanctions bill. The bill proposes imposing a massive 500 percent tariff on countries, including India, that continue to trade with Russia.(SIS)
These stocks have remained volatile since Trump returned to power and increased tariffs on Indian imports to 50 percent, citing New Delhi's purchase of Russian oil.
Republican Senator Lindsey Graham said the bill would give the US an opportunity to put additional pressure on countries "fueling Putin's war machine" by buying Russian oil. He said the legislation, backed by Trump, could be brought to a bipartisan vote as early as next week, even as diplomatic efforts to end the Ukraine war continue.(SIS)
According to the US Congress website, the proposed Sanctioning of Russia Act of 2025 also seeks to penalize individuals and entities and increase duties on all goods and services imported from Russia into the US by at least 500 percent, signaling a massive escalation in economic pressure.
Graham said the bill would empower the US president to take action against countries buying discounted Russian oil, which Washington believes is helping to finance Moscow's war efforts. "This bill will allow President Trump to punish countries that buy cheap Russian oil, which is fueling Putin's war machine," he said, naming China, India, and Brazil as potential targets.(SIS)
This development comes at a time when the long-pending India-US trade agreement remains in limbo despite several rounds of talks between officials from both countries.(SIS)
