From textile to shrimp stocks, Trump's twin tariffs leave Indian export stocks gasping

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US President Donald Trump's double-tariff salvo hit Indian equity markets on August 7, triggering a sharp selloff in labor-intensive sectors such as textiles, seafood, and auto components. Market experts believe this pressure could linger, particularly in stocks with significant US exposure, until the tariff uncertainty clears or India's trade disadvantage narrows compared to competing nations.As per data, all three sectors – textile stocks, auto component makers, and shrimp exporters – felt the brunt of Trump's announcement. The initial 25 percent tariff was declared on July 31 and takes effect starting today. A second penalty of another 25 percent was announced shortly after, citing India’s ongoing purchases of Russian oil, which the US alleges fuels the war in Ukraine.This second blow also comes just before a planned US delegation visit to India in mid-August for the sixth round of trade negotiations. India's firm stand against opening its dairy and agricultural markets has irked US officials. While experts believe this could be a negotiation tactic, the twin tariffs, if fully enforced, risk bringing India-US trade to a virtual standstill.Here’s a breakdown of how sectoral and individual stocks are reacting to the tariff fallout:Gokaldas ExportsRoughly 70 percent of Gokaldas Exports’ revenue comes from the US market. The fresh tariff increases the competitive gap between India and other textile exporting countries such as Bangladesh, Vietnam, and even Pakistan.Chandan Taparia, Senior Vice President at Motilal Oswal, noted that the stock is trading at its lowest level in fifteen months and has a weak structure for the upcoming sessions. He marked Rs 600 as a key support level.The company’s management said in its earnings call that they expect margin pressure in Q2 due to both tariffs and seasonal weakness. Assuming an average tariff of 20 percent across major exporting nations and a three times markup, the margin impact on end consumers could be 7 to 8 percent. However, the management expects the impact to be temporary and margins to normalise by early FY27.Welspun LivingWith 50 percent of its revenue coming from the US, Welspun Living has already reported an 11 percent decline in revenue in the June quarter due to tariff-related uncertainties. The company now plans to take a more conservative approach in Q2 and expects continued pressure on both margin...

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