TIRUPPUR: The tariff imposed by US President Donald Trump on India has sent shockwaves across Tiruppur, the knitwear capital of India, as the monthly knitwear export from the district to the US alone accounts for Rs 2,000 crore. However, the exporters expressed confidence that the centre would take the right step in dealing with the situation.
Kumar Duraiswamy, an exporter and joint secretary of Tiruppur Exporters Association (TEA), said the tariff hike was unexpected.
“Trump has announced a 25% tariff from August 7 and that a 50% tax would be imposed from August 27. He didn’t say he would stop with that,” Duraiswamy said.
“Among the exporters in the district, 30% are doing business only with the US and they will be severely affected. This will lead to exporters competing among themselves to take order from other countries,” he added. Tiruppur had exported knitwear worth Rs 44,747 crore in the last financial year.
KM Subramanian, president of TEA, said the 50% tariff is shocking. “This will also affect the people in the US, as they will have to buy eco-friendly knitwear in certain fashion from us.
“As the US will not be able to make alternative arrangements, people there will have to pay higher prices. We will soon approach the central government,” he said, adding they will try to take more orders from other countries to recover from the impact.
Tirupur Exporters and Manufacturers Association president MP Muthurathnam said the tariff hike will incur losses for the exporters.
“The central government should establish trade relations with new countries and announce special schemes for the exporters,” he added.