Investors are watching the US Supreme Court closely as it decides whether former President Trump can keep using emergency powers to impose tariffs on imports.
What’s at stake?
The court will determine if Trump’s use of the International Emergency Economic Powers Act (IEEPA) to levy duties without Congress’ OK is legal. If the court blocks the tariffs, Indian companies that export heavily to the US could see a bounce back. If the tariffs stay, the pressure continues.
How export‑focused companies are reacting
- Gokaldas Exports rose about 3% to ₹642.5, but its shares are still down roughly 41% over the past year.
- Pearl Global Industries gained around 2% to ₹1,522.
- Avanti Feeds slipped more than 2%.
- Apex Frozen Foods fell nearly 6% to ₹260.25.
- KPR Mill dropped 3% to ₹826.7.
Analyst perspective
Ajit Mishra of Religare Broking notes that export stocks have rallied on hopes of a favorable ruling, but warns that the US may still use other measures to keep tariffs in place. He advises investors to stay cautious because broader market weakness could limit upside.
Sunny Agrawal from SBI Securities says the “overhang” of Trump’s tariffs will likely persist in all three possible outcomes – whether the court strikes them down, upholds them, or issues an unclear decision – until India and the US negotiate a rollback.
Why the decision matters for Indian investors
More than 900 lawsuits have been filed in the US seeking refunds for duties already paid. If the court rules against the tariffs, importers could claim up to $150 billion in refunds, which would improve cash flow for many export‑oriented firms.
Key takeaways
- The Supreme Court’s ruling could move export stocks either up or down, depending on the outcome.
- Even a win for exporters may be tempered by other US legislative moves that keep tariffs high.
- Investors should watch the court’s decision closely, but also keep an eye on broader market trends and any new US policy announcements.
Remember, this is perspective, not a prediction. Do your own research and consider talking to a certified financial advisor before making any investment decisions.