Trump Tariff: How It Will Impact Tamil Nadu Textiles?

A new 50% tariff from the United States is expected to have a severe impact on the Indian textile industry, with the state of Tamil Nadu facing the most significant consequences. This is because the state contains Tiruppur, a major hub responsible for nearly 60% of the country's knitwear exports, The New Indian Express reported.

In response, Tamil Nadu's Chief Minister M.K. Stalin has written to Prime Minister Narendra Modi, cautioning that the tariff could cause serious damage to the state's textile and apparel sector. He has requested that the central government offer special financial aid to exporters. The state contributed $8 billion, or 26.8%, of India's total textile exports of $37 billion in FY25.

KM Subramanian, president of the Tiruppur Exporters Association (TEA), provided specific figures to the English daily: "Nearly 60% of knitwear exports come from Tiruppur. Last year, our exports were worth ₹45,000 crore. With the new tariff, business worth ₹12,000 crore is immediately at risk. We urgently need the Union government to intervene with the US and provide financial support to exporters and manufacturers."

The economic stakes are high for employment in the region, as Tiruppur's 2,500 factories employ over 8-9 lakh people, more than 60% of whom are women.

Raja M Shanmughan, an exporter and former TEA president, detailed the immediate fallout: "In the past 10 days, shipment worth 4,000 crore has been stopped because of the US tariffs. For the past two months, Indian exporters and the US importers have been sharing the basic tariff 10%."

Regarding potential job cuts, the situation is still being assessed. Subramanian stated that they are analysing the losses and nothing can be said for the time being. Shanmugham confirmed that some units have shut down due to shipments being put on hold, but there have been no job losses as of now.

This new tariff poses a major threat to India's ambitious goal of reaching $100 billion in textile and apparel exports by 2030. With current exports at $37 billion, the additional 50% duty makes this target very difficult to achieve within five years. Some projections indicate the tariff could affect 28-40% of India's total textile business with the US.

Meanwhile, India is now aiming to sell the products in 40 key markets, including Germany, France, Italy, Spain, the Netherlands, Poland, Canada, Mexico, Russia, Belgium, the UAE and Australia.

"In each of these 40 markets, this is proposed to pursue a targeted approach, positioning itself as a reliable supplier of quality, sustainable, and innovative textile products with the lead role of the Indian industry, including EPCs and Indian Missions in these countries," an official told news agency PTI.

The initiative is aimed at helping India diversify its export basket and strengthen its position globally, especially at a time when high tariffs in the US are expected to weigh heavily on shipments from India's textile sector.

"Recognising this, the government is planning dedicated outreach programmes in each of these 40 countries, with a focus on both traditional markets and emerging markets," the official added.