US tariffs on India: Tiruppur textile hub bears brunt, trade worth ₹3,000 crore impacted

Tamil Nadu Chief Minister MK Stalin on Thursday said that the 50 per cent tariffs levied by the US on India have impacted the textile hub in Tiruppur adversely, with trade worth nearly ₹3,000 crore affected. He demanded immediate relief and structural reforms to safeguard the state's industries and workers.

His take came almost 24 hours after the US President Donald Trump levied sweeping 50 per cent tariffs on Indian exports. The textile and apparel sector is among the worst hit by the US tariffs besides shrimp, diamonds and jewellery, carpets and handicrafts, leather and footwear, agrifood, etc.

"The US tariff hike to 50 per cent has hit Tamil Nadu's exports hard, especially Tiruppur's textile hub, causing a trade impact of nearly ₹3,000 crore and putting thousands of jobs at risk. I reiterate my demands to the Union Government for immediate relief and structural reforms to safeguard our industries and workers," Stalin wrote in a post on X. 

Soon after the US tariffs kicked in, exporters in Tiruppur stopped getting fresh orders, and the customers are renegotiating old ones, as per a report in The Times of India. Alexander Neroth, director of NC John Garments, said that many knitwear companies in the textile hub have exposure to the US. 

He added that it is difficult for knitwear exporters to absorb the impact as customers are renegotiating previously placed orders, mostly with small and medium-scale enterprises operating with 8-15 per cent margins. 

Another exporter said that it is unviable for the companies to bear the costs. He added that at best, companies can offer a 5 per cent discount on prices, leading to 7 per cent reduction in landed cost. The exporter further said that some companies are offering discounts without any margins in the hopes of a turnaround. 

Tiruppur forms a large chunk of India's readymade garment exports to the US and has exported goods worth over ₹15,000 crore to the US in FY25, as per trade bodies. SBI Research placed the tariffs on knitted apparel at around 64 per cent and expects a high impact on the industry.