Category: General
Country: India
Region: South Asia
Textile manufacturers such as Welspun Living, Indo Count, Vardhman Textiles, Gokaldas Exports, Pearl Global and KPR Mills lost between 3% and 9% after Trump's tariff and penalty threat
By Moneycontrol News
31st July, 2025 / 11:29 IST
Textile stocks were trading sharply lower on July 31 after US President Donald Trump announced 25% tariff on India effective August 1.
At 10:30 am on July 31, textile manufacturers such as Welspun Living, Indo Count, Vardhman Textiles, Gokaldas Exports, Pearl Global and KPR Mills lost between 3% and 9% after Trump's tariff and penalty threat.
Meanwhile, shares of Vedant Fashions and Trident were trading 4.73% and 3% lower, respectively. Shares of Arvind Ltd and Raymond Lifestyle were trading 3% and 1.3% lower, respectively.
Nearly 70% of Gokaldas Exports' topline comes from the US market, as does for Indo Count Industries. For Welspun Living and Pearl Global, that figure lies at 65% and 50% respectively, reported CNBC-TV18.
For apparel exports, India competes with countries like Bangladesh, Vietnam and China. While Bangladesh has been hit with a 35% tariff, Vietnam recently concluded a deal with the US, agreeing to pay a 20% tariff. However, media reports said US officials have showed a willingness to reduce the planned 35% additional tariffs on Bangladeshi imports.
The 25% figure would single out India more severely than other major trading partners, and threaten to unravel months of talks between the two countries.
After announcing the tariffs, President Donald Trump said the U.S. is still negotiating with India on trade.
The proposed 25% U.S. tariff on Indian goods, along with a penalty for energy and defence deals with Russia, is a clear short-term negative for exports and GDP growth, three analysts told Reuters.
With trade negotiations set to resume in mid-August, markets will remain jittery until clarity emerges, they added.
"Investors will reassess their strategies with a mix of caution and optimism after the tariffs and penalties imposed on Indian goods," said Utsav Verma, head of research at Choice Institutional Equities.
"Sectors like textiles, pharmaceuticals and automotive components are likely to be most impacted and may see reduced investor interest in the short term," Verma said.
Courtesy: moneycontrol.com
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