US Tariff Hike Hits Textile Stocks: Gokaldas Exports, Pearl Global, KPR Mill Tumble Up to 5%

Market Performance

Textile shares came under significant pressure on Thursday, August 7, as the US administration announced a steep hike in tariffs on Indian goods. The sharp reaction in the equity market was led by companies heavily dependent on exports to the United States.

• Gokaldas Exports Ltd., Pearl Global Ltd., Indo Count Industries Ltd., KPR Mill Ltd., and Welspun Living Ltd. saw stock prices fall up to 5% intraday.
• The decline followed US President Donald Trump's executive order, which raised tariffs on Indian imports from 25% to 50%.
• The initial 25% tariff comes into effect immediately, with the additional 25% kicking in 21 days from the order’s signing.

Main News

The Indian textile sector, with strong export linkages to the US market, faced selling pressure as investor sentiment turned negative. These companies have already been under pressure over the last week after the first round of US tariffs.

Here’s a look at the recent stock-wise decline:

Company Details

Gokaldas Exports Ltd.

• Generates approximately 70% of its total revenue from the US market.
• Among the most impacted due to the tariff hike.
• Witnessed a 21% decline in just six sessions.

Indo Count Industries Ltd.

• Also sources 70% of its revenue from the US.
• Faced a steep 17% correction over the past seven trading days.

Welspun Living Ltd.

• US accounts for 65% of total revenue.
• Stock has declined by 15% over the last six sessions.

Pearl Global Ltd.

• Earns 50% of revenue from the US.
• The stock has seen a 19% fall in recent trading.

KPR Mill Ltd.

• Though relatively more diversified, still saw a 12% dip in four out of five sessions.

Tariff Comparison with Competing Nations

The tariff hike not only affects India’s textile exports but also widens the cost gap with competitors like Bangladesh, Pakistan, and Vietnam.

• Bangladesh: Tariff reduced from 35% to 20%
• Pakistan: Revised tariff from 29% to 19% post new trade agreement
• Vietnam: Recently agreed to a 20% tariff deal

This disparity may affect India’s global competitiveness in the textile export market.

Summary of the Article

The sudden escalation in US-India trade tensions has rattled major Indian textile players. Stocks like Gokaldas Exports Ltd., Pearl Global Ltd., Indo Count Industries Ltd., KPR Mill Ltd., and Welspun Living Ltd. recorded sharp losses of up to 5% amid tariff concerns.

As a substantial portion of their revenue depends on US exports—up to 70% in some cases—these companies face serious headwinds in the near term. Furthermore, competing nations receiving more favorable tariff terms could tilt the textile trade balance away from India.