US tariff hike may hit Tirupur garment exports by Rs 12,000 crore: Exporters’ body chief

CHENNAI: Tirupur’s garment exporters have raised serious concerns over the United States’ imposition of a 50 per cent tariff. According to KM Subramanian, President of the Tirupur Exporters' Association, the US decision to impose an additional 25 percent duty on Indian goods could severely impact exports, especially knitwear, with losses estimated to reach Rs 12,000 crore.

“With the prices of Indian goods rising in the US due to these duties, trade is expected to suffer significantly,” said Subramanian, as quoted in a Maalaimaar report.

He added that such a move is unacceptable and urged the Indian government to initiate immediate talks with the US administration to resolve the issue. “Ultimately, it’s American consumers who will bear the brunt. A garment that currently costs Rs 100 may go up to Rs 150, making it harder for consumers to afford.”

Subramanian also warned that competing countries like Bangladesh may take advantage of the situation, capturing orders that would otherwise come to India. However, he reassured that jobs in Tirupur’s knitwear industry are unlikely to be affected, thanks to a duty-free trade agreement signed with the UK. He noted that the deal could lead to an increase in orders from European countries, potentially boosting employment rather than reducing it.