Textile stocks mixed: Gokaldas Exports drops 4%, Welspun jumps 5% after US SC tariff ruling

Synopsis

Indian textile stocks saw mixed trading on Monday. This followed a US Supreme Court ruling on tariffs. President Trump then imposed new global tariffs. This has created uncertainty for trade deals. India is studying the implications. A key trade meeting between India and the US has been rescheduled. Indian stock markets advanced on the news.

Textile stocks traded mixed on Monday, with Gokaldas Exports falling 3% to hit the day's low of Rs 766.25 on the National Stock Exchange (NSE) while Indo Count and K.P.R. Mill slipping up to 1.3% in the early trade as uncertainty about the tariff impact looms. In contrast, Welspun Living surged 4.5% to hit the day's high of Rs 142.90, while Pearl Global also rose to 4% intraday

While the US Supreme Court on Friday ruled President Donald Trump's tariffs illegal while noting he overstepped his authority, the clarity on global trade deals is still to come. The Indian government said that it was studying the implications of the court ruling.

Following the SC decision, Trump slapped a 10% global tariff on Friday only to revise it upwards to 15% on Saturday. According to a White House fact sheet, the new levy will take effect at 12:01 a.m. ET on February 24. Trump said he was invoking Section 122 of the Trade Act of 1974 -- a rarely used provision that allows the president to impose tariffs of up to 15 per cent for up to 150 days to address “large and serious” balance of payments problems. The authority does not require a prior investigation, though any extension beyond 150 days would need congressional approval.

Speaking at a White House briefing, Trump insisted that his broader tariff architecture remained intact. “All of those tariffs remain,” he said. “They all remain. Even after the decision.”

“Effective immediately, all National Security TARIFFS, Section 232 and existing Section 301 TARIFFS, remain in place, and in full force and effect. Today I will sign an Order to impose a 10% GLOBAL TARIFF, under Section 122, over and above our normal TARIFFS already being charged...” he added.

Meanwhile, India and the United States have rescheduled a key meeting between their chief trade negotiators that was expected to take place this week in Washington, ToI reported, citing government sources. The meeting was set to finalise the legal text of the proposed interim bilateral trade agreement.

The Indian delegation, led by chief negotiator Darpan Jain, was set to travel to the US capital for discussions with US trade representative Jamieson Greer.

Meanwhile, India’s benchmark indices advanced on Monday after the US Supreme Court on Friday struck down President Donald Trump’s sweeping global tariffs. The 30-stock index surged over 600 points to the day's high of 83,462; meanwhile, Nifty traded over 150 points higher to trade above the 25,750 level.

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