4 Stocks to Watch as US Proposes Up to 12.5% tariff on India Over Forced Labour

The US Trade Representative (USTR) has proposed an additional 12.5% tariff on imports from India and several other countries over alleged failures to prevent imports linked to forced labour. The proposal is currently open for consultation and hearings before any implementation.

At this stage, the biggest risk is to export-oriented textile, apparel, leather, and manufacturing companies with significant US revenue exposure.

However, as the tariff proposal is still under review and India-US trade negotiations are ongoing, the actual impact could change substantially before implementation.

At this stage, stocks from the sectors below did not see a major fall post the announcement. This is because some of these companies are integrated, which can protect margins, while others have strong brands.

Here are 4 stocks to watch post the tariff announcement...

 

#1 Welspun Living

First on our list is Welspun Living.

Welspun Living is one of the world's largest home textile manufacturers and India's leading exporter of home textile products.

Formerly known as Welspun India, the company manufactures towels, bed sheets, rugs, flooring solutions, and advanced textiles, supplying major global retailers across more than 50 countries.

It's the No. 1 supplier of home textiles to the U.S. market and has built strong brands such as Christy, Spaces, and Welhome.

Current Market Price	Rs 144.1 (3 June, 2026)
P/E	64.9
P/BV	2.8
52-week High/Low	152.9 /107.4
Market Cap	Rs 138,214 m

Source: Equitymaster

 

How the US Proposal of up to 12.5% Tariff Could Impact Welspun Living

The company supplies towels, bedsheets, and home textiles to major US retailers.

If tariffs raise import costs, retailers may seek price concessions from suppliers.

This could pressure margins even if sales volumes remain stable.

Despite the proposed US tariff, the company has several competitive advantages. It's one of the largest suppliers of towels and bed linen to major US retailers. Large customers are often reluctant to switch suppliers quickly because of quality, reliability, and compliance requirements.

The company focuses on branded, innovative, and sustainable products, which typically have better pricing power than commodity textiles.

Although the US is important, Welspun also serves Europe, Asia, and the domestic Indian market, reducing dependence on a single geography.