Shares of Indian textile and shrimp companies came under sharp pressure on August 28 after the United States imposed a steep 50% tariff on Indian imports. The move, announced by US President Donald Trump with an additional 25% duty effective August 27, has made Indian exports far costlier compared to Asian peers like Bangladesh and Vietnam, which face only 20% tariff.
As Indian markets were closed on August 27 due to Ganesh Chaturthi, the impact was visible today. Export-heavy stocks saw selling pressure in early trade. Raymond Lifestyle and KPR Mill slipped nearly 3%, Gokaldas Exports was down about 1%, Welspun Living lost around 2%, and Trident declined over 1%.
Shrimp exporters were more impacted as US is their biggest market. According to Marine Products Export Development Authority (MPEDA), US imported seafood worth $2.71 billion from India in FY25, of which frozen shrimp was over 92%. Apex Frozen Foods which gets 53% of its revenue from US, dropped by 5%, while Avanti Feeds which gets 77% of its revenue from North America, dropped by 4%.
Analysts fear the steep tariff hike will severely impact margins of both textile and seafood companies and make Indian products less competitive in US market.
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Source: Moneycontrol
News Desk
