US 50% tariff hit to India’s Tiruppur apparel exporters resurfaces as orders and margins shrink
Resurfacing an early-October move, a 50% US tariff on Indian imports disrupted Tiruppur manufacturers, with one supplier’s US order cut from 2 million to 500,000 pieces. Exporters sought European, UK and domestic demand as industry forecasts pointed to an apparel-export decline of up to 9% in FY2026.
What happened
Raft Garments · US 50% tariffs on Indian imports are disrupting Tiruppur apparel exporters, prompting order cuts, factory-closure risks and debt concerns.
Key facts
- US tariff on Indian imports: 50%
- Raft Garments exports about 50% of output to the US
- Apparel exports could decline up to 9% in FY ending March 2026
- US order reduced from 2 million pieces to 500,000
- Raft Garments workforce: about 400 workers
What changed
US 50% tariffs on Indian imports are disrupting Tiruppur apparel exporters, prompting order cuts, factory-closure risks and debt concerns. Manufacturers are seeking UK, European and domestic buyers while industry groups seek relief; apparel exports may fall up to 9% in FY2026.
Why this matters
The 50% US tariff creates meaningful downside for Indian apparel exporters with concentrated US exposure, signaling weaker FY2026 export volumes, margin compression, and elevated balance-sheet risk.
What to watch
- Confirmed tariff implementation date, product-level scope, exclusions and any India-US trade negotiations.
- Monthly US apparel import volumes and unit values from India versus Bangladesh, Vietnam, Indonesia and Central American suppliers.
- Tiruppur order-book commentary, factory utilization, receivables days, inventory levels and export-credit defaults.
- US retailer disclosures on tariff mitigation, sourcing shifts, gross-margin guidance and planned apparel price increases.
- EU/UK order inquiries and whether replacement demand is incremental rather than merely diverted from existing suppliers.