Shares of several textile companies declined on September 21 after US President Donald Trump signed the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 into law, raising concerns over potential trade implications for countries purchasing Russian crude oil and natural gas.
Gokaldas Exports shares fell 4.3% to Rs 696.5, while Vardhman Textiles and Arvind declined 3% and 2%, respectively. Garware Tech Fibre and Indo Count Industries also witnessed losses of 2.5% and 1.6%.
The legislation authorises Washington to impose tariffs of up to 100% on countries that continue purchasing Russian energy, although the law does not automatically impose the highest tariff level after coming into effect.
Tariff powers create uncertainty for exporters
The new law expands the US administration’s authority to take trade action against major buyers of Russian energy. However, it also provides flexibility to the White House to adjust, delay or waive tariffs depending on economic and strategic considerations.
The legislation includes a national-interest provision that allows tariff suspension if enforcement is considered harmful to US economic interests or strategic partnerships.
Tariff levels can also be modified based on whether countries take significant steps to change their energy trade patterns.
A possible 100% tariff on Indian goods could create challenges for both countries. Higher duties on consumer imports may increase costs for US buyers and add to inflationary pressures.
Impact on India-US trade discussions
India and the US are currently engaged in negotiations for a broader bilateral trade agreement. The tariff provisions could serve as a negotiating tool rather than immediately result in additional duties on Indian exports.
The potential restrictions also raise concerns over global energy markets. Limiting India’s access to Russian crude could affect refined fuel supplies in international markets, particularly across Europe and Asia.
Market participants are monitoring how the US administration implements the new law and whether India’s trade and energy ties with Russia lead to further action.