Shares of KPR Mill Ltd fell sharply in early trade on Tuesday, August 26, dropping nearly 3% to ₹993.90 on the NSE. The decline comes a day before the United States enforces a 25% additional tariff on Indian exports starting August 27, a move that could severely impact India’s textile and seafood industries.
US tariff impact on Indian textiles
The United States is India’s biggest buyer of textiles and seafood, industries that employ millions of farmers, factory workers, and processors. With the new levy, duties on Indian exports could climb as high as 50%, threatening margins and triggering order cancellations.
Indian exporters warn that U.S. buyers are already pausing fresh orders, demanding suppliers absorb part of the tariff burden, and exploring lower-cost sourcing hubs like Bangladesh, Vietnam, and Indonesia. Compared to India, where duties may now reach 50–60%, Bangladesh enjoys a 20% tariff and Vietnam 20%, making Indian products less competitive.
KPR Mill’s position
As a leading integrated textile manufacturer, KPR Mill is directly exposed to U.S. market dynamics. The company’s stock has been under pressure as investors weigh the potential hit to export volumes and margins from the steep tariff hike.
Outlook
The move by the U.S. administration, citing India’s continued purchase of Russian oil, has broader implications beyond textiles. Industries such as gems and jewellery, engineering goods, auto components, and carpets are also likely to feel the heat, while pharmaceuticals, smartphones, and energy remain exempt for now.