Indian Shares Surge Amid US Plan to Refund $166 Billion in Reciprocal Tariffs
US Supreme Court Decision Sparks 5% Surge in Textile and Seafood Stocks
The US Supreme Court's ruling last April that President Donald Trump imposed tariffs without constitutional authority has led to a significant boost in textile and seafood stocks. On April 21, the stocks rose by up to 5%, with several companies experiencing notable gains. Avanti Feeds and Apex Frozen, seafood stocks, were trading 2% higher each at 1:30 pm, while Gokaldas Exports and Welspun Living saw their stocks climb 5.5% and 4%, respectively.
The companies owed $166 billion in refunds, plus interest, can now begin applying for reimbursement through a new US Customs and Border Protection portal. The portal is part of the Consolidated Administration and Processing of Entries (CAPE) program, which aims to consolidate refunds of IEEPA duties, including interest, rather than processing refunds on an entry-by-entry basis.
CBP estimates that refunds will be issued within 60 to 90 days after approval, although the process may be delayed depending on whether additional reviews of entries are merited. The government plans to process refunds in phases, focusing first on more recent tariff payments. However, technical factors and procedural issues may also delay an importer's application, causing reimbursements to trickle down to consumers slowly.
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The Supreme Court's 6-3 decision last April found that Trump usurped Congress' tax-setting role when he set new import tax rates on products from almost every other country, citing the US trade deficit as a national emergency that warranted his invoking of a 1977 emergency powers law. The decision has now led to the launch of a refund system for businesses that paid the tariffs.
| Company | April 21 Stock Gain |
|---|---|
| Avanti Feeds | 2% |
| Apex Frozen | 2% |
| Gokaldas Exports | 5.5% |
| Welspun Living | 4% |
The system starting up on Monday will refund tariffs directly to the businesses that paid them, which are not obligated to share the proceeds with customers. The new portal will allow companies to begin applying for reimbursement on Monday.
Investor Takeaway
Indian shares may continue to surge as US refunds $166 billion in reciprocal tariffs.
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