Shares of textile and apparel companies like Gokaldas Exports Ltd., KPR Mill Ltd., among others will be in focus on Thursday, July 3, after the US President Donald Trump announced a trade deal with Vietnam on Wednesday evening.Vietnam is a major manufacturing hub for garments and apparel, along with a major exporter to the US as well.
As part of the deal, any imports into the US from Vietnam will attract 20% tariff, while US exports to Vietnam will be done at zero tariffs. Vietnam was earlier hit with a 46% reciprocal tariff by the Trump Administration, which was later brought down to 10% during the three-month pause.
India is still in the process of negotiating a trade deal with the US and talks are currently in their final stages. A better tariff deal compared to Vietnam, would turn out to be a positive for these stocks. However, it must be clarified that while the US and Vietnam have announced a deal, product-specific tariffs, or broader contours of the deal are yet to be shared publically.
In an interaction with CNBC-TV18 on Wednesday, Sivaramakrishnan Ganapathi of Gokaldas Exports had mentioned that average tariffs of their products is between 15% and 18%, along with another 10% tariff on top of that.He added that the US market will see some upward revision in prices and it remains to be seen how will that impact demand. The interaction had taken place before the deal was announced.
As part of the deal, any imports into the US from Vietnam will attract 20% tariff, while US exports to Vietnam will be done at zero tariffs. Vietnam was earlier hit with a 46% reciprocal tariff by the Trump Administration, which was later brought down to 10% during the three-month pause.
India is still in the process of negotiating a trade deal with the US and talks are currently in their final stages. A better tariff deal compared to Vietnam, would turn out to be a positive for these stocks. However, it must be clarified that while the US and Vietnam have announced a deal, product-specific tariffs, or broader contours of the deal are yet to be shared publically.
In an interaction with CNBC-TV18 on Wednesday, Sivaramakrishnan Ganapathi of Gokaldas Exports had mentioned that average tariffs of their products is between 15% and 18%, along with another 10% tariff on top of that.He added that the US market will see some upward revision in prices and it remains to be seen how will that impact demand. The interaction had taken place before the deal was announced.
Based on its annual report for 2024, nearly three-quarters of Gokaldas Exports’ topline came from the US market.
KPR Mill will also be in the spotlight, as 21% of its revenue comes from the North American market, as per its latest annual report shared to the exchanges.
Besides these names, stocks like Trident, Welspun Living, Vardhman Textiles, could also see a reaction in response to this trade deal.
Shares of Gokaldas Exports have remained flat in the last one month, are down 19% so far in 2025, while those of KPR Mill are up 12% in 2025. Welspun Living shares are down 13% year-to-date, while those of Vardhman Textiles have remained unchanged this year.
