Trump tariffs impact: Tamil Nadu’s US-bound textile exports hit pause, Rs 6,000 crore trade at risk

Several garment manufacturers in Tiruppur, Tamil Nadu’s knitwear hub, have suspended production, while others are weighing their options after the United States announced steep new tariffs on Indian imports. Industry representatives said American buyers have also paused execution of existing orders, prompting exporters to adopt a “wait and watch” stance.The move follows Washington’s decision to impose an additional 25 per cent duty on Indian goods from August 27, on top of the existing 25 per cent levy, taking the total tariff to 50 per cent. The White House said the measure was a response to India’s continued purchase of Russian oil.Tiruppur Exporters’ Association (TEA) president K M Subramanian said the region’s total annual exports stand at around Rs 45,000 crore, with the US accounting for Rs 12,000 crore or 30 per cent of the total. “We expect 50 per cent of business to the US — worth about Rs 6,000 crore — to be impacted,” he told PTI.Industry members said some exporters have already stopped production, while others are exploring alternatives. “Right now, those catering to the US have halted production. It will severely impact us. We are adopting a wait-and-watch strategy for the next two weeks,” Subramanian said. Orders already received have been put on hold “as per buyers’ decision” and stock is being held, he added.Subramanian warned that exporters making standalone shipments to the US will face “severe hardship” and said the TEA will convey its position to the central and state governments after assessing the situation.Despite the setback, industry leaders see opportunities in other markets. Following India’s free trade agreement with the UK, exporters are optimistic about boosting shipments there. “There is a good chance for us to explore that market also,” Subramanian said.An industry veteran, requesting anonymity, told PTI that the expected loss in the US market could be offset over time by redirecting exports to other countries. “We expect that a shift to other markets may happen in the future,” the official said, adding that the industry will make formal representations to both central and state authorities.Apart from textiles, other sectors such as chemicals, dairy, leather and footwear are also expected to be affected by the US tariff hike.