Welspun Living, Alok Ind: Textile stocks slip up to 4% on US tariff jitters

Textile stocks traded largely negative, falling up to 4 per cent, after 50 per cent tariffs levied by the US on Indian goods came into effect from August 27, 2025

Textile stocks, including garments and apparel, traded largely negative, falling up to 4 per cent, following the implementation of 50 per cent US tariffs on Indian goods, effective 27 August 2025.

 

The additional 25 per cent tariff imposed by US President Donald Trump on India for its purchases of Russian oil came into effect on Wednesday, bringing the total amount of levies imposed on New Delhi to 50 per cent.

 

At 10:29 AM, individually, among others, Page Industries down 1.94 per cent, Raymond Lifestyle down 1.59 per cent, Welspun Living was down 1.09 per cent, Alok Industries was down 1.19 per cent, Vardhman Textiles was down 0.97 per cent, Garware Technical Fibres was down 0.65 per cent, K.P.R. Mill was down 0.21 per cent, Vedant Fashions was down 0.25 per cent, and Faze Three was down 0.65 per cent. 

 

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Kranti Bathini, director — equity strategy, WealthMills Securities, warned that the textile sector and companies with significant US exposure are likely to be hit while tariffs remain in place. "This will have a negative impact in the near to medium term, so investors should avoid the sector for some time," he said.  On a similar note, Justin Khoo, senior market analyst - APAC, VT Markets said, "The sharpest pressure falls on textiles, gems, jewellery, footwear, furniture and chemicals."

 

He added: A 50 percent tariff does not translate directly to retail prices because importers and exporters often absorb much of the cost, which limits consumer inflation but squeezes exporter margins. In the near term, choppier equities and cautious foreign flows. Over time, supply chains may pivot toward alternative markets while India seeks policy support and renewed talks.  However, V K Vijayakumar, chief investment strategist, Geojit Investments believes the 50 per cent tariff will not have a significant impact on corporate earnings of textiles, some machinery and gems and jewellery sectors. 

US tariffs on Indian goods

The trade rift between India and the US escalated on August 27, when US President Donald Trump's latest tariff hike took effect. The Trump administration announced an additional 25 per cent duty on Indian exports, doubling the overall levy to 50 per cent.

 

From August 27, Indian goods entering the US will face a total tariff of 50 per cent. This doubles the existing 25 per cent rate and covers a wide basket of products.

 

The US is India’s largest export market, accounting for nearly a fifth of outbound shipments. A 50 per cent duty could make Indian goods less competitive compared with Vietnam, Bangladesh, and Mexico.