Shares of Indian textile companies, including Gokaldas Exports, KPR Mill, Vardhman Textiles, and Arvind Ltd, surged up to 8.2% in intraday trade on Tuesday, July 8, following the U.S. administration’s announcement of a 35% tariff on Bangladeshi imports, with significant implications for the apparel and textile sector.
Gokaldas Exports led the rally, soaring 8.2% to an intraday high of ₹974.70. Vardhman Textiles followed with a 7.9% jump to ₹537.70. KPR Mill climbed 4% to ₹1,204.85, while Arvind Ltd rose 2.9%, reaching ₹356.35 during the session.
The newly imposed U.S. tariff, effective from August 1, was slightly revised from the initially proposed 37% in April to 35%. Despite the marginal reduction, the rate is substantially higher than the standard 10% baseline and is expected to erode Bangladesh’s competitiveness in the global garment supply chain.
There remains room for negotiation before the tariff comes into force next month.
The development comes on the heels of a trade agreement signed last week between the U.S. and Vietnam, under which direct Vietnamese exports will attract a 20% tariff, and transshipped goods—those routed through Vietnam to bypass origin-specific duties—will face a steep 40% levy.
India currently faces a general 10% tariff on textile exports to the U.S., although actual duties vary by product category and can reach up to 26% for certain classifications. In the readymade garments segment, Vietnam leads with a 19% share of the U.S. market, followed by Bangladesh at 9%, and India at approximately 6%.
