Tamil Nadu’s Textile Hubs Hit by US Tariff Shock

Tamil Nadu’s Textile Hubs Hit by US Tariff Shock

Tamil Nadu’s knitwear and textile exporters are reeling from the US decision to raise tariffs on garments and home textiles to 50%. Exporters say orders are being paused, diverted, or lost to competitors like Bangladesh, Pakistan, Vietnam, and Cambodia, where tariffs are much lower.

The new duties push effective rates on some products up to 64%, making Indian goods up to 35% costlier than rivals. Exporters call it “a de facto trade embargo.”

This comes just as Tiruppur, Coimbatore, and Karur—Tamil Nadu’s key textile hubs—were expecting a rebound in US demand. Together, they employ 1.25 million workers and export textiles worth ?45,000 crore annually.

A 10–20% drop in exports could threaten 1–2 lakh jobs in the coming months. Tiruppur, which alone contributes ?40,000 crore and supplies Walmart, GAP, and Costco, now faces a grim outlook, with US orders for cotton and knitted apparel forecast to fall 40–50%.

Even home textiles are hit, with American buyers delaying purchases of bed linens and towels, normally finalised by October.

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