Textile and shrimp company shares fell in trade on 28 August after the United States hiked taxes on Indian imports by 50%. These export-oriented stocks incurred huge losses.

Yesterday (27 August), US President Donald Trump imposed an additional 25% duty on Indian imports, essentially raising the import tax to up to 50%. 

Indian imports are subject to a 50% duty, which is much higher than all Asian peers. Bangladesh and Vietnam, which compete with Indian textile exports to the US, will pay a 20% duty instead. This will most certainly have a significant impact on export-oriented textile industries.

KPR Mill and Raymond Lifestyle stock plummeted approximately 3% in early trading, while Gokaldas Exports fell nearly 1%. Welspun Living shares declined over 2%, while Trident shares slid more than 1%.

Imports into the United States also contribute significantly to the earnings of shrimp feed firms.  Notably, the United States was the largest buyer of Indian frozen shrimps in 2024-25, according to the Marine Products Export Development Authority (MPEDA). 

“As for overseas markets, the USA continued to be the major importer of Indian seafood in value terms with an import worth US$ 2,714.94 million, with volume handled 3,46,868 MT. Exports to the US increased by 6.50% in US dollars, 8.76% in rupee value and 5.37% in volume. Within the USA’s seafood import basket by India, frozen shrimp continued to be the principal item with a share of 92.55% in terms of US dollar,” it said in a press release.

As a result, increasing tariffs are anticipated to have a significant impact on their profit margins. Apex Frozen Foods shares fell over 5% in the early trading hours, while Avanti Feeds shares fell nearly 4%. In the January-March quarter, North American sales accounted for 77% of Avanti Feeds’ overall revenue. During that time, the United States accounted for 53% of Apex Frozen’s overall revenue.

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