Tariffs hit Tiruppur knitwear hub hard, puts at risk exports worth Rs 12000 cr

The 50 per cent tariffs imposed by the Trump administration, are set to hit Tiruppur particularly hard, which accounts for nearly 60 per cent of India’s knitwear exports. KM Subramanian, President, Tiruppur Exporters Association (TEA) says, the tariffs have put business worth Rs 12,000 crore at immediate risk. He urged the Indian government to intervene and provide financial support to exporters and manufacturers.

In the past 10 days, shipments worth Rs 4,000 crore have been stopped due to US tariffs, notes Raja M Shanmughan, Former President, Tiruppur Exporters Association. Indian exporters and the US importers have been sharing the 10 per cent basic tariff for the past two months, he adds.  Exporters are analyzing the losses and nothing can be said for the time being, observes Subramanian. Some Tiruppur units are shut as consignments have been put on hold, Shanmugham informs.

The Confederation of Indian Textile Industry (CITI) stats reveal India exported over $10 billion worth of textiles and apparel to the US in FY25. But growth has slowed. In June 2025, exports to the US grew just 3.3 per cent Y-o-Y - well below India’s previous trajectory and far behind Vietnam and Bangladesh.

As per CITI and OTEXA, India is losing market share to Vietnam. Between January and June 2025, India’s textile exports to the US stood at $5.36 billion, while Vietnam’s rose 18.5 per cent to $8.54 billion. India’s monthly exports declined from $860 million in January to $770 million in June.