Indian textile shares made a comeback during Tuesday's morning trade session after a major action by US President Donald Trump when he imposed a 35% tariff on imports from Bangladesh.
Key players in the textile industry like Trident, Welspun, Gokaldas Exports, KPR Mill, Vardhman Textiles, and Arvind Ltd. saw significant gains in the early part of the day. Gokaldas Exports went up more than 7%, Vardhman Textiles went up by 7.4%, and Welspun Living saw a 2% rise.
The rally followed a letter written by President Trump to Bangladesh's Chief Advisor Muhammad Yunus, in which he stated, "we will charge Bangladesh a tariff of only 35 per cent on any and all Bangladeshi products sent into the United States, separate from all sectoral tariffs," from August 1, 2025.
Trump explained the decision by saying, "Please understand that the 35 per cent number is much less than what is necessary to end the trade deficit imbalance we have with your nation." He also warned that any effort to divert goods in order to avoid tariffs would have the consequence of the goods being billed at the higher rate.
He further warned that if Bangladesh retaliates by increasing its own tariffs, the US would retaliate by adding that increment on top of the newly added 35%.
"These tariffs are needed to right the many years of Bangladesh's tariff and non-tariff policy and trade barriers responsible for these unsustainable trade deficits against the United States. This deficit is a significant threat to our economy and indeed our national security," Trump said.
The US President further stated that there may be a reconsideration of the above duties which Bangladesh may do if it does away with its existing trade restraints and invites the American product to enter its market. "We will maybe look into the modification of these letters. These tariffs can be increased or decreased, based on our relationship with your nation," he added.
Today, Vietnam leads the US ready-made garment industry with 19%, followed by Bangladesh at 9%.
Aside from the Bangladesh tariffs, Trump has imposed a 25% tariff on Japanese and South Korean imports and notified 12 other nations of forthcoming tariffs. In the meantime, he added that the US is "very close to making a deal with India."
Read also| Trump Sends Notices, Plans 25% Tariffs on Japan and South Korea Starting August 1
Read also| Markets Climb in Anticipation of India-US Trade Deal
