NEW DELHI— Shares of Indian textile companies rallied in early trading on Tuesday after U.S. President Donald Trump announced a sweeping 35% tariff on all imports from Bangladesh, sparking optimism for Indian exporters.
Major textile firms including Trident, Welspun, Gokaldas Exports, KPR Mill, Vardhman Textiles, and Arvind Ltd. saw notable gains. Gokaldas Exports rose more than 7%, Vardhman Textiles surged 7.4%, and Welspun Living advanced by 2% during morning trade.
In a letter addressed to Bangladesh’s Chief Advisor Muhammad Yunus, Trump said the 35% tariff on all Bangladeshi products entering the U.S. will take effect on August 1, 2025. The move is separate from existing sector-specific 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. He warned that any attempts to transship goods through third countries to evade tariffs would result in the imposition of the higher rate.
Trump further cautioned that if Bangladesh retaliates by raising its own tariffs, the U.S. would match that increase on top of the 35% already announced.
“These tariffs are necessary to correct the many years of Bangladesh’s tariff and non-tariff policies and trade barriers causing unsustainable trade deficits against the United States,” Trump wrote. “This deficit is a major threat to our economy and indeed our national security.”
However, the U.S. president also left the door open for negotiations: “If Bangladesh wishes to open its closed trading markets to the U.S. 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.”
In the U.S. ready-made garment (RMG) market, Vietnam currently holds a dominant 19% share, while Bangladesh accounts for approximately 9%.
In addition to targeting Bangladesh, Trump has also imposed 25% tariffs on imports from Japan and South Korea and sent tariff warning letters to 12 other countries. He added that the U.S. is “very close to making a deal with India,” signaling progress on a bilateral trade agreement. (Source: IANS)
