US tariff hike: TN textile industry seeks PM’s intervention

COIMBATORE: Textile industry stakeholders have voiced concern over the recent hike in US tariffs on textile and garment imports, warning that the move could dent export competitiveness and disrupt trade momentum at a time when India is expanding its global trade engagements.

Southern India Mills’ Association (SIMA) chairman S K Sundararaman expressed concern over the US tariff decision. While India was celebrating the progress of its Free Trade Agreement (FTA) with the UK and ongoing trade negotiations with the European Union, the unexpected tariff hike by the US came as a major setback, he said.

“The announcement is a blow to our exporters, especially with the festive season and summer export orders on the horizon,” he said.

India currently exports about US$11 billion worth of textiles and garments to the US, accounting for nearly 30% of the country’s total garment exports. India’s share in the US garment import market saw steady growth, from 4.5% in 2020 to 5.8% in 2024.

He urged Prime Minister Narendra Modi to intervene and speak to US President Donal Trump and press for the withdrawal of the penal tariffs. He emphasised the need to fast-track the scheduled bilateral trade negotiations between India and the US, expected to take place in October–November this year.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, said the recent tariff changes had tilted the playing field, putting India at a 5% disadvantage compared to Bangladesh, Vietnam and Cambodia—while retaining an edge only over China. However, India’s fully self-reliant ecosystem—from raw materials to intermediates—continues to strengthen its position in the China Plus One strategy.

“Over the past few years, supply chain diversification from China spread across 4–5 countries, with India emerging as a top sourcing destination. Despite short-term tariff challenges, buyers will continue multi-country sourcing with India on focus. To sustain momentum, industry and govt must work together to protect US market gains. We remain confident that future negotiations will lead to lower tariffs,” he said.

MP Muthurathinam, president of the Tirupur Exporters and Manufacturers Association (TEAMA), said that the textile sector is the second-largest employment provider in India after agriculture. “US President Donald Trump acted more like a businessman than a political leader. Our Prime Minister must now engage in strategic negotiations to safeguard India’s interests. Although India ranks sixth globally in apparel exports, without proper support, we will not be able to sustain our position or effectively compete with global counterparts,” he said.

Kumar Duraisamy, joint secretary of the Tirupur Exporters’ Association, said, “It is too early to assess the impact of the new tariff on India. A delegation from the US is expected to arrive in mid-August for the sixth round of negotiations. Since both countries are major markets for each other, we anticipate some clarity in the next two weeks.”

“Whether the impact is positive or negative will become evident only in the next six months. It is a gradual process, and we must wait to see how things unfold,” he added.