Indian textile firms' share prices surge as Trump imposes 35% tariff on Bangladesh
Gokaldas Exports Limited's shares rose and reached an intraday high of ₹975, while those of KPR Mill reached a high of ₹1,222.90.
Share prices of textile industries skyrocketed on Tuesday as US President Donald Trump imposed a 35 per cent tariff on Bangladesh, which plays a crucial role in the Indian textile sector.
Bangladesh acts as a major manufacturing hub for garments, especially for the global clothing market, as well as a crucial market for Indian textile exports.
Shares of textile companies like Gokaldas Exports Limited, KPR Mill Limited, Vardhman Textiles Limited, Arvind Limited, etc, saw a sharp rise in Tuesday trading.
Gokaldas Exports Limited's shares rose 8 per cent in early trade and reached an intraday high of ₹975. The shares of KPR Mill, meanwhile, surged up to 4 per cent and reached a day's high of ₹1,222.90.
Vardhman Textiles Limited's shares rose by over 7 per cent and went as high as ₹539.90. The shares of Arvind Limited recorded a 2 per cent rise and hit a high of ₹356.80.
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The share prices rose as a result of Trump's announcement of dramatic new tariffs on goods from Bangladesh. He issued "take it or leave it" offers and detailed the tariffs the 14 countries will now have to pay on goods exported to the US.
While a 35 per cent tariff was imposed on Bangladesh, Laos and Myanmar were the ones to bear the maximum brunt of Trump's levies, a whopping 40 per cent tariff.
Meanwhile, the US President imposed a levy of 36 per cent on Cambodia and Thailand, 35 per cent on Serbia, 32 per cent on Indonesia, 30 per cent on South Africa, and 25 per cent each on Japan, South Korea, Tunisia, Malaysia, and Kazakhstan.
Tariff on India
While India and the US are on their way to a trade deal, the current Trump tariff rate on New Delhi stands at 10 per cent. Washington on Monday extended the suspension of its April 2 reciprocal tariffs until August 1, a move that will provide extra time to governments of both countries to resolve outstanding issues and seal a final trade deal.
ALSO READ | US extends suspension of tariffs on India till Aug 1, giving trade talks a boost
The initial suspension, which was supposed to expire on July 9, was prolonged "based on additional information and recommendations from various senior officials" and due to the ongoing discussions with the trading partners, the White House confirmed.
Indian and US representatives have been actively engaged at the negotiating table to reach a bilateral trade agreement.
