Tariffs Trigger Industry-Wide Alarm

Indian textile exporters are facing one of their biggest crises as US tariffs on Indian goods are set to double to 50% from August 27. The move has sent shockwaves across hubs like Tiruppur, Noida, Gurugram, Bengaluru, and Ludhiana, where apparel shipments to the US form a lifeline for thousands of factories.

Exporters are in a race against time, rushing consignments worth nearly ₹2,000 crore each month to ports in a last-minute bid to avoid the higher duty. “We are now in damage control mode,” said Kumar Duraiswamy, joint secretary of the Tiruppur Exporters Association, highlighting the anxiety gripping the industry.

Orders Halt, Factories at Risk

Industry leaders confirm that fresh orders from US buyers have stopped, with importers unwilling to absorb the 50% tariff. At 25%, exporters and clients shared the cost, but at 50%, orders have frozen.

Companies like Mumbai-based Creative Group warn that they may shut down factories, risking job losses for thousands of workers. With 28% of India’s textile and apparel exports headed to the US, the blow could be devastating.

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Market Insights & Key Dynamics

• Exports at risk: $11 billion worth of textile exports to the US face steep duties.

• Employment impact: Over 100 million jobs, directly and indirectly, depend on the sector.

• Competitive disadvantage: Rivals Vietnam and Bangladesh face only 20% tariffs.

• Uncertainty looms: Buyers are pausing production and holding orders.

Hope for Relief and Diversification

Despite the turmoil, exporters remain hopeful that the government will step in. Some are banking on trade talks with the EU, UK, and Australia to open new markets. Others stress that diversification is a medium-term solution, and immediate relief is needed.

As industry leaders put it, India’s textile exports may shrink sharply unless tariffs are rolled back or offset by government support.

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