Trump’s Tariffs Force Textile Units in Tirupur, Noida & Surat to Halt Production
The Federation of Indian Export Organisations (FIEO) on Tuesday warned that Indian exports are facing an unprecedented setback after US President Donald Trump announced an additional 25 per cent tariff on Indian goods, taking cumulative duties to 50 per cent — the steepest globally.
FIEO President S C Ralhan said the move would “severely disrupt the flow of Indian goods to their largest export market” and render shipments uncompetitive. “With nearly 55 per cent of India’s US-bound exports, worth $47–48 billion, now exposed to pricing disadvantages of 30–35 per cent, Indian goods are losing ground to rivals from China, Vietnam, Cambodia, and other Asian economies,” he noted.
Textile and apparel hubs in Tirupur, Noida, and Surat have already halted production, citing worsening cost competitiveness. “This sector is rapidly ceding market share to lower-cost suppliers from Vietnam and Bangladesh,” Ralhan added. Other labour-intensive industries — including seafood, leather, ceramics, chemicals, handicrafts, and carpets — are also facing sharp erosion of competitiveness. Since the US absorbs nearly 40 per cent of India’s seafood exports, particularly shrimps, exporters fear stockpile losses, disrupted supply chains, and farmer distress.
Industry leaders stressed that the development not only threatens foreign exchange earnings but also endangers millions of jobs and undermines India’s target of achieving $100 billion in textile and apparel exports by 2030.
Ralhan urged urgent diplomatic engagement with Washington, while also calling for a long-term push to strengthen “Brand India” through global branding, investment in quality certifications, and innovation. He further recommended immediate fiscal relief, interest subvention, and low-cost credit support for exporters — especially MSMEs — to sustain working capital and liquidity.
The Confederation of Indian Textile Industry (CITI) echoed these concerns. CITI Chairman Rakesh Mehra said exporters are seeking “immediate upfront support” from the government. “Given the gravity of the situation, we expect concrete measures in the form of fiscal support and policy decisions related to raw material availability,” he said. CITI also requested a one-year moratorium on loan repayments, covering both principal and interest.
“The stakes are high — not just for exporters, but for the entire economy, which risks losing jobs, market share, and export momentum,” Mehra warned.
