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Trump’s new tariff tantrums

Textile stocks fell up to 5% on Monday after Trump 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 the 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 exports to the US, the single-largest market for India’s textile and apparel exporters.

“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,” said Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI).

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Also read | Trump’s tariff tantrums return? Gokaldas Exports, other textile stocks drop up to 5% after Trump signs Russia sanctions bill

India to cut down Russian oil imports?

Indian refiners could now cut back purchases of crude shipments from Russia after the sweeping US sanctions bill, Reuters reported. The government could limit Russian crude imports in the near term to 20% to 30% of India’s total in order to shed its position as the top buyer of Moscow’s seaborne oil, people familiar with the matter told Reuters, adding that the government meanwhile continues to negotiate with the US.
Meanwhile, US President Donald Trump is hosting Chinese leader Xi Jinping in Washington this week. Xi Jinping is set to arrive in the US on Wednesday, marking the first time in more than a decade. Markets will closely watch for signs of an extension of a tariff truce announced after a Trump-Xi summit in South Korea last October and set to expire on November 10. That deal paused a trade war in which the world’s two largest economies threatened global supply chains with tit-for-tat tariffs that topped 100%.

India-New Zealand FTA

At the same time, India and New Zealand finalised the free trade agreement (FTA) on Monday which is set to come into force on October 20. “Almost exactly three years ago, I committed that National would secure a free trade deal with India within our first term if elected. And today, we finalised the deal, which comes into force next month,” New Zealand Prime Minister Christopher Luxon said in a post on X.

“It is exciting to think of how many businesses will grow as a result of this FTA, and then consider what that means for them, for the people who work for them, and for the country as a whole. It means more opportunities for exporters, stronger growth for businesses, and more jobs and higher incomes for New Zealand,” Luxon added.

Also read | India-New Zealand FTA finalised; 100% of Indian exports to get duty-free access from October 20

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

This article was written by

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

JD Sports Fashion has entered a long-term franchise agreement with Grupo Axo, a Mexican multi-brand omnichannel retail distributor, to bring the JD brand to Mexico.

Under the deal, Axo will manage JD stores and e-commerce operations in Mexico using JD’s brand and intellectual property.

The companies will use JD’s own-brand and exclusive ranges across footwear, apparel and accessories.

Grupo Axo chairman and CEO Andrés Gómez said: “JD’s deep brand relationships, differentiated product offer and immersive retail experience are highly complementary to Axo’s platform, capabilities and understanding of the Mexican consumer.

“The partnership represents a significant moment for sports fashion in Mexico and we look forward to helping JD become the leading sports fashion destination in the market.”

From 2027, Axo will run more than 140 JD locations in Mexico via the conversion of its existing sneaker store estate.

Several of those stores are due to be expanded later in line with JD’s “bigger and better” format.

The company said: “With a population of over 130 million, around 40% of whom are under the age of 25, Mexico is a market with a large, highly engaged consumer base and a demographic profile which aligns strongly with JD’s unique position as a curator of footwear and apparel trends across sport, music and fashion.”

According to the company, the deal is part of the group’s “JD Brand First” strategy.

The arrangement with Axo increases JD’s existing franchise business, which already covers 75 JD and Courir stores across Europe, the Middle East, Africa and Asia.

In North America, JD Sports Fashion also opened its first Canadian store in June last year as part of efforts to expand in the region.

JD Sports’ latest annual results showed that revenue increased in the 2026 financial year, while consumer spending remained under pressure and the broader retail sector faced continued headwinds.

In the 12 months to 31 January 2026, revenue rose 10.5% to £12.66bn ($17.23bn). Profit before tax and adjusting items fell 7.7% to £852m.

Founded in 1981, JD Group now operates 4,766 stores in 35 countries under fascias, including Courir, DTLR, Go Outdoors, Hibbett, and Sport Zone.

JD Sports Fashion CEO Régis Schultz said: “This partnership is another important step in our ‘JD Brand First’ strategy and reinforces our ambition to make JD the leading global sports fashion destination across the world’s most attractive consumer markets.”

“JD Sports signs franchise deal with Axo to enter Mexican market” was originally created and published by Retail Insight Network, a GlobalData owned brand.

SEOUL — South Korea’s benchmark KOSPI index held above the psychologically significant 7,000 mark for a second consecutive session Tuesday, closing at 7,017.91, up 10.19 points, or 0.15%, as record semiconductor export data continued to underpin one of the strongest stock market rallies anywhere in the world this year.

Tuesday’s modest gain followed a sharp advance Monday, when the KOSPI surged 1.65% to close at 7,007.72, reclaiming the 7,000 level for the first time in seven trading sessions. That rally was driven primarily by a jump in Samsung Electronics shares, which climbed 4.98% Monday to trade back above 270,000 won for the first time in ten sessions, after South Korea reported record semiconductor exports for the first three weeks of September.

According to the Korea Customs Service, total exports reached $71.4 billion between September 1 and 20, up 78.3% from the same period a year earlier. Chip exports specifically more than tripled to $34.12 billion, a 259.4% increase that marked a new monthly record for the category. Separate figures tracking memory chip exports specifically showed an even sharper jump, surging 350.7% from a year earlier over the same three-week window, reaffirming the strength of underlying demand from global customers building out artificial intelligence infrastructure.

Institutional investors led the buying that drove Monday’s rally, purchasing a net 1.49 trillion won worth of shares, according to data from the Korea Exchange. The rally did lose some steam by the close of Monday’s session, as foreign investors turned net sellers and some retail investors moved to lock in profits after the sharp intraday gains, pulling the index back from its session high before it ultimately settled at 7,007.72.

One notable structural shift accompanying this week’s rally has been a reduction in the KOSPI’s reliance on just two dominant chipmakers. The combined weight of Samsung Electronics and SK Hynix in the index’s total market capitalization fell to 51.28% as of Tuesday, down from a June peak of 57.11%, according to data cited by Seoul Economic Daily. Market analysts have described that easing concentration as a healthy development for the broader index, since a market as heavily weighted toward just two stocks as the KOSPI had become earlier this year leaves the entire benchmark unusually vulnerable to company-specific swings in either Samsung or SK Hynix. With that concentration now moderating, some analysts have suggested the index may be better positioned to break out of the range-bound trading pattern that had persisted for more than two months before this week’s advance.

Not every signal facing Korean markets this week has been positive. The yield on the U.S. 30-year Treasury bond climbed above 5.3%, raising concerns among some investors about the prospect of prolonged losses in long-duration bond holdings, a dynamic that can weigh on broader risk appetite even as equity markets like the KOSPI continue climbing on stronger fundamentals. Investors have also remained closely focused on an upcoming summit between the United States and China, at which artificial intelligence, tariffs and rare earth minerals are all expected to be discussed, with the outcome seen as having potential implications for global trade flows and technology supply chains that could directly affect South Korea’s export-dependent economy.

Tuesday’s session also saw continued strength across a range of other major Korean companies. Samsung Electro-Mechanics rose 3.78%, LG Electronics gained 6.42%, SK Inc climbed 2.09%, and Doosan Enerbility and HD Hyundai Heavy Industries each posted gains above 1%, reflecting broad-based strength extending well beyond the two largest chipmakers that have historically dominated the index’s overall performance.

The KOSPI’s climb above 7,000 this week caps an extraordinary run for South Korean equities over the past year. The index first crossed the 7,000 threshold on an intraday basis back on May 6, closing that day at a then-record 7,384.56, part of a rally that saw the benchmark climb roughly 75% year-to-date at that point, following a 76% gain in 2025 that itself marked the index’s strongest annual performance since 1999. Since that initial breakout, the KOSPI has moved above and below the 7,000 level repeatedly, reflecting the volatility that has characterized trading throughout the year even as the index’s longer-term trajectory has remained firmly upward. According to Trading Economics, the KOSPI is now up more than 104% compared with the same time last year, and has gained more than 6% over just the past month alone.

Samsung Electronics separately unveiled its next-generation HBM4 memory chip this week, a product the company is positioning to strengthen its position in the global market for high-bandwidth memory used in AI accelerators, adding a further company-specific catalyst to the broader export-driven rally that has lifted the stock in recent sessions.

With the KOSPI having now closed above 7,000 in back-to-back sessions for the first time in several weeks, and with record chip export data continuing to reinforce the underlying fundamentals behind the rally, investors are likely to watch closely in the coming sessions for confirmation of whether the index can sustain its break out of the range-bound pattern that defined much of the summer, or whether renewed pressure from rising long-term bond yields and unresolved trade tensions between the U.S. and China will reassert themselves as headwinds heading into the final months of the year.