Donald Trump slaps 35% tariff on Bangladesh, Indian textile stocks jump 8%; Gokaldas Exports, Vardhman prime gainers

Donald Trump is back with new tariff plans for 14 countries, including Bangladesh with 35 per cent, Japan with 25 per cent, Korea with 25 per cent, and others. Additionally, the president on Tuesday said that they are 'close to making a deal with India' soon. Following the announcements, shares of Indian textile players saw their shares rally over eight per cent in the morning session on Tuesday, July 8, after the US imposed the sweeping tariff on Bangladesh.

According to a Money Control report, the imposition of such high tariffs on Bangladesh makes locally manufactured textile exports more competitive in comparison in global markets. While the announcement represents a slight decrease from the 37 per cent rate announced in April, it remains above the baseline rate of 10 per cent.

However, there is still an opportunity for negotiation until August 1, which is when the tariffs will come into effect.



At 9.25 a.m., the shares of the domestic textiles fluctuated a bit; here's a look:

• Gokaldas Exports: The shares of the globally reputed Indian apparel manufacturer and exporter noticed a jump of 7.8 per cent to Rs 970.
• Vardhman Textiles: Another domestic textile group engaged in the business of manufacturing yarn, Fabric, acrylic fibre, and garments, noticed a spike of 7.4 per cent to Rs 525.75.
• KPR Mill: A Coimbatore-based trader gained 2 per cent on shares at Rs 1,181.30.
• Welspun Living: An Indian textile manufacturing company headquartered in Mumbai, was up 2 per cent at Rs 145.65 on Tuesday following the US tariff announcements.

Among the other textile counters, Alok Industries and Raymond also saw solid buying interest.



The steep tariff imposed on Bangladesh, though slightly lower than the 37 per cent proposed in April, still marks a sharp rise from the previous 10 per cent base rate and is set to take effect on August 1. The move is widely considered a positive trigger for Indian exporters, especially in the readymade garment (RMG) segment.

In the US garment import market:

• Vietnam holds a 19 per cent share.
• Bangladesh has a 9 per cent share.
• India follows with 6 per cent

This means, with Donald Trump's move, the US buyers are likely to diversify away from higher-cost countries, and Indian exporters could see an uptick in orders, helped by their cost-efficiency and production scale.


According to Zee Business, the tariff hike comes as a part of a broader trade realignment by former US President Donald Trump, who announced a spike in tariffs on 14 countries. While on the other hand, Bangladesh faces a 35 per cent spike in tariffs. Following:

• Laos- 40 per cent tariffs
• Myanmar- 40 per cent tariffs
• Thailand- 36 per cent tariffs
• Cambodia - 36 per cent tariffs
• Bangladesh - 35 per cent tariffs
• Serbia - 35 per cent tariffs
• Indonesia - 32 per cent tariffs
• South Africa- 30 per cent tariffs
• Bosnia and Herzegovina- 30 per cent tariffs
• Malaysia- 25 per cent tariffs
• Tunisia- 25 per cent tariffs
• Japan- 25 per cent tariffs
• South Korea- 25 per cent tariffs
• Kazakhstan- 25 per cent tariffs

However, India was not mentioned in the list, but Donald Trump, in a post on Truth Social, said, “We are close to making a deal with India... Some [countries] will maybe adjust a little bit depending on if they have a cause. We’re not going to be unfair about it.” The statement sparked optimism that Indian textile exports will avoid fresh tariffs, further improving their relative advantage in the US market."