Will Tiruppur Knitwear Exporters Thrive After US Tariff Reduction?
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Key Takeaways
Tiruppur, Tamil Nadu, Feb 3 (NationPress) - The knitwear exporters in Tiruppur are celebrating the recent decision by the United States to lower import tariffs, viewing it as a crucial relief for an industry heavily reliant on exports and a vital step towards revitalizing growth.
The knitwear industry in Tiruppur represents nearly 40% of its total exports to the US, which has faced tremendous pressure since a steep 50% tariff was implemented. This increase compelled many exporters to seek alternative markets, a transition that industry leaders report has brought about delays, increased costs, and operational unpredictability.
Exporters highlighted the difficulty in finding substitutes for the US market due to its vast scale and established trade connections. Over the past four to five months, exports to the US have sharply declined, raising fears that American importers might permanently switch their sourcing to other nations.
In light of this, the announcement by US President Donald Trump to reduce the tariff to 18% has instilled a sense of optimism within the Tiruppur cluster. Representatives from the industry have termed this news a “happy day” for exporters, expressing hope that the sector will regain its lost momentum.
“The prolonged wait for the tariff reduction posed significant challenges, but the resolution between the two nations brings us great relief,” stated Kumar Duraisamy, Joint Secretary of the Tiruppur Exporters Association. He added that even a slight delay could have led to a permanent shift in importers, complicating efforts to regain their business.
Echoing these sentiments, Sakthivel, President of the Apparel Export Promotion Council, mentioned that the reduction in tariffs would help rebuild trust among US buyers and restore trade volumes.
“Tiruppur is poised to reclaim its former prestige and move ahead with renewed energy,” he remarked.
Exporters remain hopeful that improved trade conditions will allow the industry—once recognized as India's knitwear capital—to resume its growth trajectory in the upcoming months.