Indian Textile Stocks Surge As US Slaps 35% Tariff On Bangladesh
Indian textile exporters saw a sharp rally on Tuesday morning after US President Donald Trump announced a 35% reciprocal tariff on Bangladeshi goods, effective August 1, 2025. The move boosted investor sentiment in Indian textile stocks, which are seen as potential beneficiaries of the shift in US sourcing preferences.
Yesterday, Gokaldas Exports led the rally, surging 8.3% to Rs 975 on the National Stock Exchange (NSE). Vardhman Textiles rose 7.8% to Rs 538, while Trident gained 4.76% to Rs 32.60.
The surge followed Trump’s tariff letters to 14 countries, including Bangladesh, Cambodia, Indonesia, Myanmar, Thailand, Japan, South Korea, and others. In his letter to Bangladesh’s Chief Adviser Muhammad Yunus, Trump cited persistent trade deficits and non-reciprocal policies as reasons for the steep duty hike. He warned that further tariff hikes would apply if Bangladesh retaliates.
Trump added that goods transshipped to avoid tariffs would face the higher rate and encouraged Bangladeshi manufacturers to relocate production to the US to avoid duties.
While China remains the largest textile exporter to the US, India, Bangladesh, and Vietnam are key suppliers. With Bangladesh now facing stiff US tariffs, Indian exporters may gain a competitive edge in the crucial American market.
The White House confirmed that the tariff extensions are part of broader trade reforms, following a 90-day review period during which several countries agreed to lower barriers. However, the administration noted that the US trade deficit remains high, justifying further tariff action.
Indian textile stocks are now in focus as global sourcing strategies shift in response to the new US trade stance.
