Indian textile stocks surge as US slaps 35% tariff on Bangladesh exports
The sudden tariff shift has triggered expectations that Indian exporters may gain a competitive edge in the US market
Indian textile stocks witnessed a significant rally on Tuesday following US President Donald Trump's imposition of a 35% tariff on Bangladeshi exports, an announcement expected to shake up global supply chains in the garment sector.
According to a report by the Hindustan Times, the move is seen as a major blow to Bangladesh, which has long served as a key player in the global apparel industry, as well as a vital importer of Indian textile materials.
The sudden tariff shift has triggered expectations that Indian exporters may gain a competitive edge in the US market.
Keep updated, follow The Business Standard's Google news channel
In response to the announcement, shares of several prominent Indian textile firms surged sharply during trading hours.
Gokaldas Exports Limited jumped 8% in early trade, reaching an intraday high of ₹975. KPR Mill Limited's shares rose up to 4%, touching a day's high of ₹1,222.90. Vardhman Textiles Limited rallied by more than 7%, climbing to ₹539.90, while Arvind Limited gained 2% to reach ₹356.80.
The surge in share prices comes after Trump issued a series of steep new tariffs on 14 countries, warning trading partners with "take it or leave it" terms. While Bangladesh was hit with a 35% tariff, Laos and Myanmar faced the steepest hike, with a 40% levy imposed on their goods exported to the US.
Other countries targeted by the new tariffs include Cambodia and Thailand (36%), Serbia (35%), Indonesia (32%), South Africa (30%), and 25% each on Japan, South Korea, Tunisia, Malaysia, and Kazakhstan.
India's tariff status remains unchanged
While India was not among those hit with steep new tariffs, the country currently faces a 10% tariff rate under Trump's existing policy. However, hopes for a breakthrough remain high as both governments continue to work towards a comprehensive trade deal.
On Monday, Washington extended the suspension of its April 2 reciprocal tariff on India until 1 August.
The extension, which had been scheduled to expire on 9 July, was made "based on additional information and recommendations from various senior officials" and due to the ongoing discussions with India, the White House stated.
Negotiators from both New Delhi and Washington are actively engaged in talks to finalise a bilateral trade agreement.
