50% duty threatens ₹6,000 crore in exports; industry explores UK and alternative markets
India’s knitwear capital, Tiruppur, is facing a major disruption after the United States imposed an additional 25% duty on Indian goods, bringing total tariffs to 50%. The measure, effective August 27, was announced by Washington in response to India’s continued purchase of Russian oil.
The impact on Tamil Nadu’s garment sector has been immediate. Several exporters have suspended production, while others have adopted a “wait-and-watch” strategy as U.S. buyers pause or cancel existing orders.
According to Tiruppur Exporters’ Association (TEA) President K. M. Subramanian, the region’s annual exports stand at ₹45,000 crore, with the U.S. accounting for ₹12,000 crore, or about 30% of total shipments. “We expect half of our U.S. business—roughly ₹6,000 crore—to be affected,” he told PTI.
Exporters making standalone shipments to the U.S. are expected to face “severe hardship,” as completed orders are now on hold at buyers’ request. TEA plans to formally convey its concerns to both state and central governments after assessing the full impact.
Despite the blow, industry leaders see potential in new markets following India’s free trade agreement with the UK, alongside gradual diversification toward Europe and Asia. “There is a good chance for us to explore that market,” Subramanian said.
The U.S. tariff escalation is also expected to ripple across other sectors, including chemicals, dairy, leather, and footwear, compounding the trade strain on India’s export economy.
