India’s knitwear capital has raised an SOS after US President Donald Trump imposed steep tariffs on Indian exports, putting 20,000 factories and nearly 30 lakh jobs at risk.

Kumar Duraisamy, Joint Secretary of the Thiruppur Exporters Association, said the district, with 2,500 exporters and 20,000 standalone units, contributes 68 percent of India’s knitwear exports.

“Last year we made a turnover of Rs 44,744 crore, which is a phenomenal growth amidst the COVID lockdown, the slowing down of the Western economy and the Russia-Ukraine crisis. After this, we got 20 percent growth. Thiruppur caters to the USA, the UK, European Nations, Australia, the UAE, Saudi Arabia and African countries, of which American business is 40 percent and Europe makes another 40 percent, the UK 10 percent and the rest is 10 percent,” he said.

Exporters dependent solely on US buyers face the brunt of the crisis. Factories manufacturing core items such as undergarments, baby suits, and sleepwear are in “deep trouble” as razor-thin margins make it impossible to absorb tariffs.

“Buyers have instructed the factories to shipout whatever goods which are ready by 27th August while also asking to absorb a certain portion of the tariff which many have agreed to. But when the second 25 percent is announced for India, it is a huge blow as no one can absorb such a blow. This has put a hold on orders with buyer instructing no more shipment of orders after 27th August,” Duraisamy said.

Tamil Nadu Chief Minister MK Stalin has written to Prime Minister Narendra Modi seeking urgent intervention. “In the last financial year, while 20% of India’s total goods exports of $433.6 billion were to the United States, 31% of Tamil Nadu’s $52.1 billion goods exports went there. This higher dependency on the US market clearly implies that tariff impact on Tamil Nadu will be disproportionately greater than for most other Indian states,” Stalin said.

Highlighting that Tamil Nadu accounts for 28 percent of India’s textile exports, Stalin warned that a tariff hike could endanger millions of livelihoods. “Especially, our textile sector employs nearly 75 lakh people and with a 25 percent tariff and a proposed 50 percent tariff, an estimated 30 lakh jobs are at immediate risk. To mitigate this crisis, it is essential to address structural issues that have long hindered our export competitiveness,” he said.

– Ends