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Shares of Indian textile companies tumbled after the US administration under President Donald Trump announced tariff cuts for Bangladesh
Textile Stocks Fall
Textile Stocks Fall: Shares of Indian textile companies tumbled on Friday after the US administration under President Donald Trump announced tariff cuts for rival suppliers, improving their competitiveness in the American market.
Stocks such as Kitex, Pearl Global, KPR Mill and Welspun Living fell up to 7% as investors reacted to the latest tariff shift. Shares of Gokaldas Exports slipped 3.1% to Rs 824.50, Pearl Global Industries fell 7.2% to Rs 1,380.05, Arvind Ltd declined 1.8% to Rs 310.40, and Welspun Living dropped 1.9% to Rs 123.80. KPR Mill was down 4.3% at Rs 1,092.
The selloff followed the US decision to reduce import duties on Bangladeshi goods to 20% from 35%, a move that significantly boosts Bangladesh’s competitiveness in the American ready-made garments (RMG) market, where it is already a major player.
In a parallel development, Pakistan secured a new trade agreement with the US, which lowered tariffs on its goods to 19% from 29%. Trump said the two countries also plan to cooperate on oil exploration projects, despite Pakistan’s previous unsuccessful attempts to tap its reserves.
The updated US tariff schedule revealed lower import duties on over 50 countries, including Bangladesh (20%), Pakistan (19%), Vietnam (20%) and several ASEAN nations such as Malaysia, Indonesia and the Philippines (19%). In contrast, India continues to face a 25% tariff.
This differential treatment has raised concerns among Indian exporters, particularly in labour-intensive sectors like textiles and high-value electronics, which risk losing price competitiveness in the US — India’s largest export destination.
Analysts warn that unless India negotiates more favourable trade terms, its exporters could struggle to defend their market share against lower-tariff nations.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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