Trump 25% Tariff On India: Gokaldas Exports, other textile stocks fall up to 7%

Six Indian textile companies, Gokaldas Exports Ltd., Welspun Living Ltd. Indo Count Industries Ltd. and Pearl Global Ltd. will be in focus on Thursday, July 31, after US President Donald Trump announced that India will have to pay a 25% tariff on August 1, along with a penalty for buying oil from Russia.

These four companies highlighted above, have a significant exposure to the US market.

Nearly 70% of Gokaldas Exports' topline comes from the US market, as does for Indo Count Industries. For Welspun Living and Pearl Global, that figure lies at 65% and 50% respectively.

In addition to these names, stocks like Arvind Ltd. (30% of topline from the US) and KPR Mill (21% from the US) also have exposure to the US market.

For apparel exports, India competes with countries like Bangladesh, Vietnam and China. While Bangladesh has been hit with a 35% tariff, Vietnam recently concluded a deal with the US, agreeing to pay a 20% tariff.

China, which currently has a 55% tariff, continues to negotiate with the US, with reports suggesting that the August 12 deadline would most likely be extended, but the final call lies with the president.

According to analysts, India has a 6% market share in the US ready-made garment imports, while Vietnam has a 19% share and Bangladesh stands at 9%.

In an interaction with CNBC-TV18 on July 5, Pearl Global's management had highlighted that it plans on increasing its capacity in Vietnam by 25% to 30% to amidst a surge in orders.

Gokaldas Exports had mentioned earlier that the average tariff on their products is between 15% to 18% and a 10% tariff on top of it. Sivaramakrishnan Ganapathi of Gokaldas said that the US market could see an upward revision in prices and it remains to be seen how that will impact demand.

Shares of Gokaldas Exports are down 22% so far in 2025. Pearl Global's shares surged 7% on Wednesday, taking their year-to-date advance to 10%.

Shares of Welspun Living fell to the lows of the day after the results announcement on Wednesday and are down 20% so far in 2025. Indo Count's shares also fell 5% on Wednesday and have corrected 18% so far in 2025.