Shares of textile exporters dropped up to 5% on Monday after US President Donald Trump signed the sweeping Russia sanctions bill into law, spooking investors about fresh tariff tantrums which can impact Indian companies.

Gokaldas Exports shares plunged nearly 5% to trade below Rs 630 apiece on NSE, while those of Indo Count Industries and Vardhman Textiles fell more than 3% each. Arvind shares meanwhile dropped over 2%, despite the overall positive market sentiment on Monday.

Trump on Friday signed the bipartisan Lindsey O Graham Sanctioning Russia and Iran Act of 2026 into law, paving the way for increased economic pressure on Russia over its invasion of Ukraine. The new law gives the Trump administration that power to impose tariffs of up to 100% on countries buying Russian oil and gas, potentially exposing major buyers such as India and China to higher duties on their exports to the US. The US is the single-largest market for India’s textile and apparel exporters.

Also read | Trump signs Russia-Iran sanctions law, opens door to 100% tariffs on India

Textile body sees severe threat to India’s textiles sector

The Confederation of Indian Textile Industry (CITI) expressed concerns over the potential impact on India’s textile and apparel exports through likely additional tariffs being imposed by the United States following the signing of the ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026’ by the US President.

“Any additional tariffs under this Act will be very difficult to absorb for the MSME-dominated Indian textile and apparel sector already under stress due to several factors, including the continuing turmoil in West Asia. It will severely impact our ability to sell in the United States, our most significant market by a distance,” CITI Chairman Ashwin Chandran said, in a statement.

“We eagerly look forward to the Government of India engaging more closely with the United States to ensure that Indian exporters are not disadvantaged and rendered completely uncompetitive in the world’s No. 1 economy,” Chandran further said, adding that a fair, balanced and equitable bilateral trade deal (BTA) between India and the US is the urgent need of the hour. India has been negotiating the BTA with the United States for some time.

Also read | Lindsey O. Graham Sanctioning Russia & Iran Act: Textile body sees severe threat to India’s textiles & apparel sector

For the period between April and August 2026, India’s textile exports rose 6.94% in US dollar terms, but apparel exports fell 9.10%, leaving cumulative textile and apparel exports marginally lower by 0.24% year-on-year.

The bill, called the ‘Lindsey ⁠O. Graham Sanctioning Russia and Iran Act of 2026’ to honor the South Carolina Republican who died in July, ⁠was passed by the House of Representatives on Wednesday and the Senate last month. Graham, a ⁠longtime Russia hawk, was a staunch backer of the legislation.