INSUBCONTINENT EXCLUSIVE:
Shares of Indian textile companies including Gokaldas Exports, KPR Mill, Vardhman Textiles, and Arvind Ltd zoomed up to 8.2% in intraday
trade on Tuesday, July 8, after the US administration, under President Donald Trump, announced a 35% tariff on Bangladesh, with specific
implications for the apparel and textile sector.The shares of Gokaldas Exports surged 8.2% on Tuesday, reaching a high of Rs 974.70, and
leading the gains among textile stocks
Vardhman Textiles shares followed closely, rising 7.9% to touch Rs 537.70
KPR Mill shares climbed 4% to reach Rs 1,204.85 during the session, while the shares of Arvind Ltd gained 2.9%, hitting an intraday high of
Rs 356.35.The newly announced tariff, which takes effect from August 1, is a slight drop from the 37% rate that had been proposed earlier in
global garment supply chain.While the US has left the door open for negotiations in the weeks leading up to the implementation, the
announcement has already prompted a reassessment of sourcing strategies among American buyers.The tariff escalation comes on the heels of a
recent trade agreement signed between the US and Vietnam, which imposes a 20% tariff on direct Vietnamese exports and a steeper 40% duty on
faces a 10% tariff on textile exports to the US, but due to product classifications and differential rates, some segments experience tariffs
favor.Industry is likely to closely track the developments around a potential trade agreement between India and the US, especially after the
return of an Indian delegation from Washington last week
market share in the US.However, it should be noted that if tariff levels remain unchanged for Indian goods while others are adjusted
downward, especially for Vietnam, India's advantage in the export market may narrow.Also read: Jane Street probe: Sebi chief Tuhin Kanta
Pandey rules out weekly expiry ban, signals tighter derivatives watch(Disclaimer: Recommendations, suggestions, views and opinions given by
the experts are their own
These do not represent the views of TheIndianSubcontinent)
