Gokaldas Exports, Other Textile Stocks Fall Up to 4% as Trump Signs Russia Sanction Bill

Shares of Gokaldas Exports and other textile companies came under pressure on September 21 after US President Donald Trump signed the bipartisan Lindsey O Graham Sanctioning Russia and Iran Act of 2026 into law. 

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Gokaldas Exports fell 4.3% to ₹696.50 by 12 pm, while Vardhman Textiles was down 3% and Arvind declined 2%. 

Other textile counters also traded lower. Garware Tech Fibre dropped 2.5%, while Indo Count Industries was down 1.6%. 

The declines followed the enactment of a US law that gives Washington the authority to impose punitive tariffs of up to 100% on countries purchasing Russian crude oil and natural gas. 

New US law expands tariff authority 

The legislation expands the US administration’s authority to take trade action against major buyers of Russian energy. 

While the law permits tariffs of up to 100%, it does not mean that the maximum levy comes into force automatically. 

The legislation gives the US President discretion over how the tariffs are applied. They can be modified, deferred or waived entirely under provisions contained in the law. 

It also includes a national-interest provision that allows tariff enforcement to be suspended if the White House determines that such a step is required to protect critical US economic interests or strategic alliances. 

Tariff rates can also be adjusted depending on whether a trading partner takes significant steps to change its energy purchases. 

Textile stocks trade lower 

The development was followed by declines across a number of textile stocks during Monday’s session. 

At 12 pm, Gokaldas Exports was trading at ₹696.50, down 4.3%. 

Vardhman Textiles and Arvind declined 3% and 2%, respectively. Garware Tech Fibre was trading 2.5% lower, while Indo Count Industries slipped 1.6%. 

The declines came as the market assessed the scope of the newly enacted legislation and the tariff powers it gives the US administration. 

Tariffs are not automatically triggered 

The legislation gives Washington the legal framework to penalise countries purchasing Russian crude oil and natural gas, but the report notes that enactment itself does not automatically impose the maximum 100% tariff. 

The US President retains broad discretion over the implementation of the measures, including the ability to modify, delay or waive tariffs. 

The report also highlighted several considerations surrounding the possibility of a blanket 100% tariff on Indian goods. 

Such duties on major consumer imports could raise prices for US households and add to inflationary pressures. India and the US are also engaged in negotiations for a comprehensive bilateral trade agreement, meaning the legislation could provide Washington with additional leverage in those discussions rather than automatically result in tariffs. 

The report further noted the potential implications for global energy supplies. Restricting Indian refiners’ access to international crude markets could affect refined-product supplies across Europe and Asia. 

For textile stocks, Monday’s trading reflected the market’s immediate reaction to the new US legislation, with Gokaldas Exports recording the steepest decline among the companies cited in the report.