Impact of US Tariffs on Tamil Nadu's Textile Exports

Several garment manufacturers in Tiruppur, Tamil Nadu’s knitwear hub, have suspended production following the United States' announcement of steep new tariffs on Indian imports. Industry representatives report that American buyers have paused execution of existing orders, leaving exporters in a 'wait and watch' mode.

Understanding the Tariff Hike

The White House's decision to impose an additional 25 per cent duty on Indian goods, effective from August 27, raises the total tariff to 50 per cent. This move is a response to India’s continued purchase of Russian oil, significantly impacting trade relations between the two countries.

Industry Reactions and Future Plans

Tiruppur Exporters’ Association (TEA) president K M Subramanian highlights the potential loss, with 50 per cent of business to the US—worth about Rs 6,000 crore—at risk. Exporters are exploring alternatives, with some halting production and others adopting a cautious approach amidst the uncertainty.

Despite the challenges, the industry sees potential in diversifying markets, especially following India’s free trade agreement with the UK. 'There is a good chance for us to explore that market also,' Subramanian remarked, indicating a strategic shift in focus.

Broader Implications

Beyond textiles, sectors like chemicals, dairy, leather, and footwear are also expected to feel the impact of the US tariff hike. Industry leaders are preparing to make formal representations to both central and state authorities to address the looming crisis.