New Delhi: The Indian textile companies saw their shares surging in the morning trade on Tuesday after the US President Donald Trump slapped 35 per cent tariff on Bangladesh.
Shares of textile firms such as Trident, Welspun, Gokaldas Exports, KPR Mill, Vardhman Textiles and Arvind Ltd. went up in the early trade.
The stock of Gokaldas Exports were up more than 7 per cent while Vardhman Textiles shares rallied 7.4 per cent and Welspun Living’s stock jumped two per cent.
In a letter to Bangladesh’s Chief Advisor Muhammad Yunus, Trump said that starting on August 1, 2025 “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.”
“Please understand that the 35 per cent number is far less than what is needed to eliminate the trade deficit disparity we have with your country,” Trump wrote in the letter. He said that goods transshipped to evade a higher tariff will be subject to that higher tariff.
The US President warned that if, for any reason, Bangladesh decides to raise its tariffs, then whatever number it chooses to raise them by will be added to the 35 per cent that the country charges.
“Please understand that these tariffs are necessary to correct the many years of Bangladesh’s tariff and non-tariff policies and trade barriers causing these unsustainable trade deficits against the United States. This deficit is a major threat to our economy and indeed our national security,” Trump noted.
If Bangladesh wishes to open its closed trading markets to the US and eliminate its tariff and non-tariff, policies and trade barriers, “we will perhaps consider an adjustment to this letter. These tariffs may be modified upward or downward, depending on our relationship with your country,” said US President.
In the US ready-made garment market, Vietnam holds a 19 per cent share, while Bangladesh accounts for 9 per cent.
Trump has imposed 25 per cent tariffs on goods from Japan and South Korea, while 12 other nations received letters revealing the tariffs they will have to pay. He also said that the US “is very close to making a deal with India”.
(IANS)
