Tiruppur textile exporters are in dire straits with the US tariff imposed in August eating into their margins. If the situation persists over the next two months, Tiruppur may suffer immediate export business losses of ₹2,000–3,000 crore.

In the coming months, these losses could escalate to ₹6,000–8,000 crore due to the diversion of orders to competing countries, KM Subramanian, President, Tiruppur Exporters’ Association (TEA), told businessline. “We expect the Budget will provide us the necessary support to tide over the crisis,” he added.

With US textile buyers demanding 25–30 per cent discounts to absorb the additional tariff burden, exporters are facing shrinking margins, order delays and cancellations, and growing uncertainty in production planning. Several MSME export units that are fully dependent on the US market may be forced to shut down operations, while larger units may be compelled to scale down production by 30–50 per cent, he told businessline.

The US remains a critical market for Indian knitwear exports. During FY25, India’s knitwear exports to the US stood at ₹22,486 crore, accounting for 34 per cent of the total knitwear exports. Tiruppur alone contributes 30-35 per cent of its knitwear exports to the US market, with monthly exports ranging between ₹1,000 crore and ₹1,500 crore. This significant dependence highlights the importance of stable and predictable trade relations with the US.

Published on: 08 January 2026

Source: The Hindu Business Line