Coimbatore: The US government’s decision under President Donald Trump to raise import tariffs on Indian goods to 50 percent is set to deliver a heavy blow to Tirupur, India’s knitwear capital. Exporters fear losses amounting to nearly ₹3,000 crore as American buyers halt orders.
Tirupur, which recorded garment exports worth ₹44,747 crore in 2024-25, had been witnessing a sharp upward trend compared to ₹33,400 crore in 2023-24. For nearly a decade, the cluster’s annual exports had remained steady between ₹33,000 and ₹37,000 crore, before breaking past records last year. The US tariff hike, however, has cast a shadow on that growth momentum.
“This is a severe setback at a time when we were hoping for sustained expansion,” said K.M. Subramanian, President of the Tirupur Exporters Association (TEA).
Nearly 35 percent of Tirupur’s exports go to the US, making the sector highly vulnerable to Washington’s trade policy shifts. Since Trump’s announcement, American importers have been holding back orders, exporters revealed. This is particularly damaging because garments in Tirupur are largely made-to-order, meaning unsold inventory results in direct losses for manufacturers.
Industry leaders warn that US companies may increasingly shift to Bangladesh, Vietnam, and Cambodia, which enjoy more favorable tariff structures, further eroding India’s share in the global garment supply chain.
Amid the crisis, exporters are looking to Europe as a buffer. The recently concluded India-UK Free Trade Agreement is expected to offer some relief, provided Tirupur can quickly scale up shipments to the UK and other EU countries.
“If we can redirect a portion of our capacity to Europe, the impact of the US tariff shock may be softened, though not fully neutralized,” Subramanian added.
For a hub that directly employs lakhs of workers and sustains countless ancillary industries, the tariff hike is not just an economic jolt it is a test of Tirupur’s resilience in navigating turbulent global trade winds.