Tirupur knitwear sector fear Trump’s tariff tsunami trap
Exporters still sound positive that the tariff effect may only be temporary, as India enjoys a competitive edge over other countries, but the real concern is on the penalty to be levied for having trade links with Russia.
COIMBATORE: US President Donald Trump’s 25 per cent tariff on Indian imports has triggered fears of a setback among the Tirupur knitwear exporters, who had witnessed a year of robust growth.
Exporters still sound positive that the tariff effect may only be temporary, as India enjoys a competitive edge over other countries, but the real concern is on the penalty to be levied for having trade links with Russia.
“It may have only a short-term effect on exports due to initial hesitancy from buyers. The tariff for India is lower than our competing nations. With the current tariffs- 35 per cent on Bangladesh, 19 per cent on Indonesia, 20 per cent on Vietnam and 36 per cent on Cambodia, India still enjoys a competitive edge over other countries,” said KM Subramanian, president, Tiruppur Exporters Association.
Tirupur’s knitwear exports recorded a robust growth in 2024-2025 by clocking an export turnover of over Rs 40,000 crore, a 20 per cent increase from over Rs 33,400 crore achieved in the previous financial year 2023-2024. Tirupur continues to play a vital role in India’s knitwear exports with a contribution of over 60 per cent.
“Of the total volume of exports from Tirupur, a significant 30 per cent is to the US. But the tariff imposition may throw up fresh challenges in achieving our growth projection of 15 per cent for this year. Nevertheless, the Free Trade Agreement with the UK may offset the tariff impact to a certain extent,” he added.
The Tirupur knitwear sector has also sought the intervention of the Indian government to negotiate with the US to roll back the new tariff structure.
The Southern India Mills Association stated 25 per cent of the tariff is manageable for the time being, but the major concern is on the range of additional penalties. “Even the buyers in the US will be hit hard by the hasty decision to impose tariff. Almost one-third of our exports are to the US. Enquiries for orders increased and garment exports surged by 16 per cent over the last two months from Tirupur, following a heavy tariff on China by the US over a trade war,” said K Selvaraju, general secretary of SIMA.
