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

Several garment producers in Tiruppur, Tamil Nadu’s knitwear hub, have suspended manufacturing, whereas others are weighing their choices after the United States introduced steep new tariffs on Indian imports. Industry representatives stated American patrons have additionally paused execution of current orders, prompting exporters to undertake a “wait and watch” stance.The transfer follows Washington’s choice to impose a further 25 per cent responsibility on Indian items from August 27, on high of the present 25 per cent levy, taking the overall tariff to 50 per cent. The White House stated the measure was a response to India’s continued buy of Russian oil.Tiruppur Exporters’ Association (TEA) president Ok M Subramanian stated the area’s complete annual exports stand at round Rs 45,000 crore, with the US accounting for Rs 12,000 crore or 30 per cent of the overall. “We expect 50 per cent of business to the US — worth about Rs 6,000 crore — to be impacted,” he informed PTI.Industry members stated some exporters have already stopped manufacturing, whereas others are exploring options. “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 stated. Orders already acquired have been placed on maintain “as per buyers’ decision” and inventory is being held, he added.Subramanian warned that exporters making standalone shipments to the US will face “severe hardship” and stated the TEA will convey its place to the central and state governments after assessing the state of affairs.Despite the setback, trade leaders see alternatives in different markets. Following India’s free trade settlement with the UK, exporters are optimistic about boosting shipments there. “There is a good chance for us to explore that market also,” Subramanian stated.An trade veteran, requesting anonymity, informed PTI that the anticipated loss within the US market could possibly be offset over time by redirecting exports to different international locations. “We expect that a shift to other markets may happen in the future,” the official stated, including that the trade will make formal representations to each central and state authorities.Apart from textiles, different sectors equivalent to chemical compounds, dairy, leather-based and footwear are additionally anticipated to be affected by the US tariff hike.