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HomeMarket NewsGokaldas Exports, other textile stocks may see more pressure after Trump hikes tariff to 50%
The increased tariff means a wider gulf between India and other competing nations within the textile market such as Bangladesh, Vietnam and even Pakistan.
Shares of beaten down textile names like Gokaldas Exports Ltd., Pearl Global Ltd., Indo Count Industries Ltd., KPR Mill Ltd., Welspun Living Ltd., among others may see further pressure on Thursday, August 7, after US President Donald Trump signed an executive order to increase the tariff rate on India to 50% from 25% earlier.
The first 25% tariff comes into effect from tonight Eastern Time, while the increased 25% will come into effect 21 days from signing of the executive order.
Textile stocks, most of whom derive a significant part of their topline from the US export market, have been witnessed selling from investors over the last one week as Donald Trump first imposed a 25% tariff on India. Here's a look at how these stocks have fared:
| Stock | Losing Streak | Decline |
| Gokaldas Exports | Five Out Of Last Six Sessions | -21% |
| KPR Mill | Four Out Of Last Five Sessions | -12% |
| Welspun Living | Five Out Of Last Six Sessions | -15% |
| Pearl Global | Four Out Of Last Five Sessions | -19% |
| Indo Count Industries | Six Out Of Last Seven Sessions | -17% |
Gokaldas Exports derives nearly 70% of its overall topline from the US market, as does Indo Count Industries, while Welspun Living and Pearl Global get 65% and 50% of their respective revenue from the US.
The increased tariff means a wider gulf between India and other competing nations within the textile market such as Bangladesh, Vietnam and even Pakistan. Bangladesh's tariff rate was recently brought down to 20% from 35% earlier, while Pakistan, which recently announced a deal with the US, will pay 19% tariff from 29% earlier. Vietnam too, recently concluded a deal with the US by agreeing to a 20% tariff levy.
