6 days ago
Gokaldas Exports, KPR Mill, other textile stocks in focus after Trump hikes tariff on India to 50%
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India responds sharply
Shares of Indian textile exporters, including Gokaldas Exports KPR Mill , and Welspun Living , may come under pressure on Thursday, August 7, after US President Donald Trump signed an executive order doubling tariffs on Indian goods to 50%.The revised tariff structure will be implemented in two phases: the first 25% hike takes effect from tonight (Eastern Time), while the additional 25% levy will come into force 21 days after the order's move widens the gap between India and competing nations such as Bangladesh, Vietnam, and Pakistan in the textile export market. Bangladesh's tariff rate has been reduced to 20% from 35%, while Pakistan, following a recent trade agreement with the US, will now pay 19% instead of 29%. Vietnam has also concluded a deal to lower its tariff rate to 20%.Beyond textiles and apparel, the increased tariffs will also affect exports of gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical certain product categories are exempt from the hike. These include pharmaceutical goods, energy resources (such as crude oil, refined fuels, natural gas, coal, and electricity), critical minerals, and electronic components like smartphones, computers, tablets, SSDs, flat-panel displays, and integrated Jain, Secretary General of the Indian Pharmaceutical Alliance, welcomed the exemption for pharma, noting that generic medicines from India remain vital to affordable healthcare in the to the White House, the tariff hike is driven by national security and foreign policy considerations. President Trump cited India's continued imports of Russian oil—directly or indirectly—as posing an "unusual and extraordinary threat" to the United States. The 50% tariff will apply to all Indian goods imported into the US, excluding those already in transit or falling under specific Ministry of External Affairs (MEA) condemned the move, calling it "unfair, unjustified and unreasonable." In an official statement, the MEA said, 'The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position, including the fact that our imports are based on market factors and aimed at ensuring energy security for 1.4 billion people.''It is extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest. India will take all actions necessary to protect its national interests,' the statement added.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
