Tariff Turmoil: Tiruppur's Garment Industry Faces US Trade Challenges

Garment manufacturers in Tiruppur, Tamil Nadu, are experiencing significant disruption after the United States imposed a 50% tariff on Indian imports. As a result, production has been halted, and industry representatives are now evaluating their next steps, placing orders on hold as directed by American buyers.

With the new tariffs, at least Rs 6,000 crore worth of business to the US market is at risk. This accounts for half of the Rs 12,000 crore annual exports from the region to the US, as stated by Tiruppur Exporters' Association President, K M Subramanian. Following a 'wait and watch' strategy, the industry plans to assess the situation for the next two weeks.

In response to these challenges, some manufacturers are eyeing opportunities in the United Kingdom, especially with the Free Trade Agreement in place. The industry is also considering shifting exports to other countries and making representations to both Central and State governments to address the tariff's impact.

(With inputs from agencies.)