Gokaldas Exports shares fall 6% as US tariff hike looms

Shares of Gokaldas Exports, a leading cotton exporter, fell by up to 6% on Monday ahead of the impending US tariff hike slated for August 27. This follows President Donald Trump's decision to impose an additional 25% tariff on Indian goods, effectively doubling the existing trade penalty to 50%. This development could adversely impact India's export figures to the US, which currently stands at $87 billion, accounting for approximately 2.2% of the national GDP.

The tariffs pose a significant challenge to the Indian textile sector, with high risk of losing market share in the US.

The immediate concern is for MSMEs, which could face difficulties without ease of financing or working capital relief. As the tariffs come into effect, there is an urgent call for governmental support and structural reforms to ensure long-term competitiveness.

Earlier, Jefferies analyst Mahesh Nandurkar had warned that the new tariff rate could put a large majority of India's $87 billion worth of exports to the US, equivalent to 2.2% of GDP, at risk.

Only pharmaceutical and electronics exports, which amount to roughly 30% of India's shipments to the US, remain exempt for now. Most impacted sectors from the US tariffs will be textiles, chemicals, auto ancillaries, and fisheries.