Stocks of textile companies such as Gokaldas Exports Ltd, KPR Mill Ltd, Vardhman Textiles Ltd, and Arvind Ltd surged by up to 7% on 8th July. This rise followed after the US, under the Trump administration, announced a sudden 35% tariff on imports from Bangladesh.

Although the new US tariff on Bangladesh is slightly lower than the 37% announced in April, it still stands at a high 35%. This rate is well above the usual 10% rate. These tariffs will come into effect on 1st August, but there’s still room for negotiation until then.

Last week, the US also signed a trade deal with Vietnam. This deal imposes a 20% tariff on direct exports and a 40% tariff on transshipped goods—those routed through Vietnam to bypass tariffs.

India currently faces a 10% base tariff, but due to varying categories, textile exports are charged up to 26%. In the US ready-made garment market, Vietnam holds a 19% share, Bangladesh 9%, and India just 6%.

A trade deal between the US and India is expected soon, as the Indian delegation recently returned from Washington.

If tariffs are lowered through this deal, India could gain a stronger competitive edge and expand its market share. However, if rates remain unchanged, India’s position against Vietnam could weaken.

Still, the outlook remains positive for Indian textile manufacturers, especially if the upcoming deal offers favourable terms.

At 3:30 PM, Gokaldas Exports ended 2.73% up at Rs 924.90, KPR Mill ended 3.60% up at Rs 1,200, & Vardhman Textiles ended 0.14% down at Rs 498.

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