Textile stocks jump after US tariffs weaken Bangladesh's lead
Textile stocks rose 1.57% after the US imposed a 35% tariff on Bangladeshi exports, raising it to 20%, reducing their competitive edge in the US market.
Though the new rate is slightly lower than April's 37%, it is still well above the 10% baseline and opens a window of opportunity for Indian exporters.
Vietnam also faces hefty duties, with 20% on direct exports and 40% on transshipped goods imposed under the new US trade agreement. Currently, India faces duties of up to 26% due to different product categories, but a pending US-India trade deal could reduce this.
Bangladesh and Vietnam have a large share in the US apparel market, so there is scope for India's share to grow, especially if more favourable terms are found in the upcoming trade deal.
For the time being, sentiment remains positive for Indian apparel manufacturers, who are well positioned to benefit from the shift in global trade dynamics
