Export-oriented shrimp and textile stocks experienced significant gains on Tuesday as the US began processing tariff refunds under former President Donald Trump. According to The Economic Times, Gokaldas Exports shares surged around 7% to trade at ₹769.5 apiece, while Arvind shares gained around 3%. The rally was driven by the US Customs and Border Protection's announcement that its refund-processing platform is now operational, allowing importers to begin filing claims for the duties they had paid.
The market surge follows the US Supreme Court's landmark 6-3 ruling on February 20, which declared Trump's import tariffs unconstitutional. As reported by The Economic Times, this ruling struck down President Trump's sweeping import tariffs, providing relief to businesses that had absorbed billions in unexpected costs. The court's decision has made Monday the day companies have been waiting for after facing tariff flip-flops throughout the year.
The US Customs and Border Protection announced on Monday that more than 56,000 registered importers can now begin filing claims through a new federal portal to recover their share of $127 billion in tariff refunds, including interest. According to The Economic Times, this follows Trump's tariff policy changes throughout the year, which initially introduced 10% tariffs in April, were later hiked to 25% in August, and then to 50% over India's imports of Russian oil. The tariffs were subsequently reduced to 18% in February following negotiations and a trade deal.
According to the Global Trade Research Initiative (GTRI), around 53% of India's shipments to the US, which largely comprise textiles and apparel, were subject to the higher tariffs. As reported by The Economic Times, Indian shrimp and textile companies derive a significant portion of their revenue from exports to the US. The stocks had declined sharply earlier last year following Trump's tariff flip-flops, but the latest refunds and hopes for subsequent demand recovery are boosting investor sentiment in the sector.
