How Will the US Tariff Hike Impact Tirupur Exporters?
Click to start listening
Synopsis
Tirupur's exporters are in distress following the US tariff hike, fearing a loss of Rs 12,000 crore. This article explores the potential impact on the knitwear industry and the broader implications for trade between India and the US.
Key Takeaways
- US tariffs on Indian goods increased by 25%
- Export losses estimated at Rs 12,000 crore
- Price hikes could reduce competitiveness in the US market
- Bangladesh may gain market share
- UK trade agreement offers hope for job stability
Chennai, Aug 7 (NationPress) Exporters in Tirupur are alarmed by the United States' recent decision to implement an extra 25 percent tariff on Indian products, effectively raising the total export duty to 50 percent.
Industry leaders fear that this latest development could significantly impact the export capabilities of India's knitwear hub, with potential losses projected at around Rs 12,000 crore.
K.M. Subramanian, the President of the Tirupur Exporters' Association (TEA), stated that the steep increase in tariffs will elevate the prices of Indian garments within the US market, adversely affecting trade dynamics and overall competitiveness.
"As prices for Indian goods rise in the US due to these tariffs, we anticipate a considerable decline in trade," Subramanian remarked.
He labeled the US decision as "unacceptable" and called upon the Indian government to take diplomatic action.
"The Centre must engage in immediate discussions with the US administration to find a resolution. These tariffs will not only harm Indian exporters but will also eventually affect American consumers," he noted.
Elaborating on the consequences, Subramanian explained that garments priced at Rs 100 in the US could now soar to Rs 150 due to the tariff increase, rendering them unaffordable for many shoppers.
This situation could lead to a dramatic drop in orders for Indian knitwear, a crucial component of Tirupur's economy.
Furthermore, he warned that competing nations like Bangladesh might gain an advantage in the US market by providing cheaper alternatives, potentially redirecting global orders that would typically go to Indian manufacturers.
Despite the impending crisis, Subramanian expressed optimism regarding domestic employment in Tirupur.
He reassured that jobs in the knitwear sector are unlikely to be immediately jeopardized, thanks to the recently established duty-free trade agreement with the United Kingdom.
"The UK agreement offers a glimmer of hope. It could not only help sustain current employment levels but also draw additional orders from European markets, thereby enhancing production and job growth," he stated.
Tirupur, recognized as the knitwear capital of India, plays a vital role in the nation's textile exports.
The abrupt tariff increase by the US has sparked widespread concern among stakeholders, who are now looking to New Delhi for prompt and effective diplomatic action to protect the industry.
Point of View
It is crucial to highlight the significant challenges facing the Tirupur knitwear industry due to the US tariff hike. It is imperative for the Indian government to engage diplomatically to mitigate losses that extend beyond exporters to impact consumers in both nations.
NationPress
19/08/2025
Frequently Asked Questions
What is the impact of the US tariff hike on Indian exports?
The tariff hike could lead to significant losses estimated at Rs 12,000 crore, affecting the competitiveness of Indian garments in the US market.
How does this tariff increase affect consumers?
With increased prices for Indian garments, American consumers may face higher costs, making these products less affordable.
What are the concerns of Tirupur exporters?
Exporters are worried about reduced trade flows and the potential for competing countries to take market share due to lower pricing.
