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Trade negotiators from India and the U.S. are racing against the clock to finalise a tariff-cutting pact before President Trump’s July 9 deadline.
Meanwhile, President Trump surprised markets by unveiling a fresh U.S.-Vietnam agreement, slashing tariffs on many Vietnamese products to 20% from the previously threatened 46%. Although the fine print isn’t out yet, Trump claimed U.S. goods could now enter Vietnam duty free.
Why it matters for India: Vietnam is a heavyweight in garments and apparel exports to the U.S. Any improvement in U.S.-Vietnam trade flows could redirect sourcing and price dynamics, indirectly benefiting Indian textile companies.
That’s why stocks like KPR Mill and Vardhman Textiles surged 1–4%, as investors bet on Indian exporters picking up orders if Vietnam focuses more capacity on the U.S. market.
Vietnam’s own stock market hit a three-year high on optimism over this deal. For Indian firms, the shifting trade sands create a window to gain market share, especially in the U.S. where brands are seeking diversified sourcing beyond China and Vietnam.
