Textile and shrimp stocks fell up to 5 percent on Tuesday after the United States issued a draft order to impose an additional 25 percent tariff on Indian imports, effective August 27.
According to a notice from the US Department of Homeland Security, the tariffs will apply to Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025”.
The move triggered concerns in the textile and shrimp sectors, with exporters fearing order cancellations and potential losses. Shrimp exporters, who send more than half their output to the US, expressed worry over the sharp increase in duty. There are fears that the textile and apparel orders could shift to rival exporters such as Bangladesh, China and Vietnam, which face lower tariffs.
Sunny Agrawal, Head - Fundamental Research at SBI Securities, noted that the imposition of a 50% US tariff, effective from August 27, 2025, has raised concerns for Indian exporters, particularly in sectors like textiles and shrimp. Companies such as Gokaldas and Avanti Feeds have substantial exposure to the US market, and the steep tariff is expected to impact their sales volumes and margins.
"Going forward, these companies may trade with negative bias, depending on the duration and scope of the imposed tariffs. Export-dependent companies will need to reassess their pricing strategies and explore alternative markets to mitigate risks. Stocks have also already corrected materially post first announcement of likely 25% incremental tariff in the first week of August and to that extent most of the negatives are already priced in," he added.
On the National Stock Exchange, Raymond Lifestyle declined nearly 3 percent to Rs 1,145 per share, while KPR Mill fell 4.6 percent to Rs 973.6. Trident and Gokaldas Exports slipped up to 3 percent each, and Garware Technical Fibres and Welspun Living were down up to 2 percent.
Shrimp stocks also saw selling pressure. Avanti Feeds dropped 0.4 percent, while Apex Frozen Foods and Waterbase Ltd slipped up to 1 percent.
Trade between the US and India is valued at over $190 billion. The higher duties come as part of Washington’s response to India’s continued oil trade with Russia, and mark one of the steepest tariff actions against a trading partner.
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