**Title:** Thiruppur’s Knitwear Industry Faces Crisis Amid US Tariffs
**Meta Description:** Thiruppur’s knitwear sector is at risk as US tariffs threaten 30 lakh jobs and 20,000 factories, prompting urgent calls for government intervention.
**URL Slug:** thiruppur-knitwear-us-tariffs-crisis
**Headline:** Thiruppur’s Knitwear Capital Raises Alarm Over US Tariffs Threatening Jobs and Factories
The knitwear capital of India, Thiruppur, is sounding the alarm as steep tariffs imposed by the US government threaten to jeopardize 20,000 factories and nearly 30 lakh jobs. Kumar Duraisamy, Joint Secretary of the Thiruppur Exporters Association, highlighted that the district, home to 2,500 exporters and 20,000 standalone units, is responsible for 68 percent of India’s knitwear exports.
In the previous financial year, Thiruppur achieved a remarkable turnover of Rs 44,744 crore, demonstrating significant growth despite challenges posed by the COVID-19 pandemic, a slowing Western economy, and the ongoing Russia-Ukraine conflict. Following this, the region experienced a 20 percent growth, with exports primarily directed towards the USA, UK, European nations, Australia, the UAE, Saudi Arabia, and various African countries. Notably, American buyers account for 40 percent of Thiruppur’s exports, while Europe contributes another 40 percent.
Exporters who rely heavily on US clients are feeling the brunt of the crisis. Factories producing essential items such as undergarments, baby suits, and sleepwear are in “deep trouble,” as their already thin profit margins make it impossible to absorb the new tariffs. Duraisamy noted that buyers have instructed factories to ship any ready goods by August 27, while also asking them to absorb part of the tariff costs, a request many have reluctantly accepted. However, the announcement of an additional 25 percent tariff has dealt a severe blow, leading to a halt in new orders.
In response to the escalating crisis, Tamil Nadu Chief Minister MK Stalin has reached out to Prime Minister Narendra Modi for urgent intervention. He pointed out that while 20 percent of India’s total goods exports of $433.6 billion were directed to the United States, a staggering 31 percent of Tamil Nadu’s $52.1 billion goods exports were also reliant on the US market. This dependency indicates that the impact of tariffs on Tamil Nadu will be disproportionately severe compared to other Indian states.
Stalin emphasized that Tamil Nadu accounts for 28 percent of India’s textile exports and warned that increased tariffs could threaten millions of livelihoods. The textile sector alone employs approximately 75 lakh people, and with the potential for a 25 percent or even a proposed 50 percent tariff, an estimated 30 lakh jobs are at immediate risk. To address this crisis, he urged the need for structural reforms to enhance the region’s export competitiveness.
In conclusion, the situation in Thiruppur underscores the urgent need for government action to protect the knitwear industry and the livelihoods it supports. As the threat of tariffs looms, the future of thousands of jobs hangs in the balance, necessitating a coordinated response to safeguard this vital sector.
**FAQ Section:**
**Q: How are US tariffs affecting Thiruppur’s knitwear industry?**
A: The recent US tariffs threaten to disrupt Thiruppur’s knitwear exports, risking 30 lakh jobs and the viability of 20,000 factories, particularly those reliant on US buyers.