“DESPITE U.S. TARIFFS, TIRUPPUR LOOKS TO EU AND UK FTA'S FOR GROWTH”

Tiruppur, August 2025 – The Indian knitwear export industry, with Tiruppur as a key center, has gained attention after U.S. President Donald Trump imposed a 25% tariff on Indian textile exports. The United States is a major destination for Indian garments, so this news will likely have important effects, especially for the micro, small, and medium enterprises (MSMEs) that support Tiruppur's export economy.
In an exclusive interview, Mr. K.M. Subramanian, President of the Tiruppur Exporters Association (TEA), discussed the immediate effects of the tariff announcement and the steps exporters are considering to protect their future.  

Us Accounts for a Key Share, But Diversification Helps  
"Tiruppur exports goods worth around ₹40,000 crore annually, with the US market making up about 30 to 35% of this business,” Mr. Subramanian said. “The 25% tariff will definitely impact us, especially for those units that rely heavily on the US. However, 70% of our exports go to other global markets, which provides some cushion against this hit.”
Quality and Compliance Anchor Long-Term US Ties  
When asked if cost pressures might push US buyers to switch to countries like Vietnam or Bangladesh, Mr. Subramanian remained confident. “Tiruppur doesn't just provide basic garments—we supply global brands that demand high-quality products with strict compliance, certifications, and factory audits. Changing such established supply chains is tough. At best, 5 to 10% of basic and low-cost branded orders might shift. But most will stay.”  
Relocation Pressure? Not Yet, Say Exporters  
Despite the tariff, US buyers are not currently pressuring exporters to move manufacturing to lower-cost countries. “Ninety percent of Tiruppur's exporters are MSMEs, and they simply cannot relocate operations. Only a few large firms might consider partial relocation, and that is a long-term option,” he stated. 
Tariff  Burden Leaves Little Room for Price Cuts  
Regarding pricing strategies, the TEA President explained, “We already work on very thin margins. Further cuts aren't feasible without government support. We've asked for stronger implementation of programs like the Market Access Initiative (MAI), Focus Market Scheme, and production subsidies through the Apparel Export Promotion Council (AEPC).” 
Existing Government Schemes Offer Some Relief  
Schemes like the Remission of Duties and Taxes on Export Products (RoDTEP) and the Production Linked Incentive (PLI) offer some help, but they do not fully cover the impact of the 25% tariff. “We ask the Indian government to re-engage with the US diplomatically to seek a revision of this tariff. If that isn't feasible, we need more robust support domestically,” Mr. Subramanian emphasized. 
Outlook: Challenges Ahead, But No Panic  
While he acknowledged the short-term pressure on smaller units, Mr. Subramanian remained hopeful about the long-term future. “Large exporters will manage through this. Some MSMEs may face temporary challenges, but with 70% of exports going to non-US markets, the overall ecosystem will hold. Recent developments like the UK free trade agreement (FTA) and ongoing EU FTA discussions are also positive signs.”  
No Mass Layoffs or Shutdowns Foreseen  
Despite concerns, TEA does not expect major job losses or factory closures. “US exports make up only a third of our business. Even if part of that is affected, we have enough orders from other areas to make up for the decline. We had projected 15% growth for this year—this might be delayed, but not stopped,” Mr. Subramanian concluded.  
While the US's 25% tariff is certainly a setback, Tiruppur's exporters are relying on their diverse markets, reputation for quality, and government support to navigate through this uncertainty. The focus now turns to diplomatic efforts and policy aid to ensure the long-term competitiveness of India's knitwear hub.