Tiruppur, India’s major knitwear and garment hub, is once again facing uncertainty over potential US tariffs. The city accounts for a significant share of India’s knitwear exports, while the US remains an important market for local exporters.

The latest tariff concerns follow the US law signed on September 18, 2026, which allows tariffs of up to 100% on countries importing Russian oil and gas. However, the law does not automatically impose a 100% tariff on Indian exports. The exact rate, targets and implementation remain undecided.

The uncertainty has made Tiruppur exporters more cautious. During the tariff shocks of 2025, several units faced cancelled orders, production cuts and workforce reductions. Migrant contract workers were among those affected as factories struggled with lower orders.

Exporters are now preparing for possible disruptions by expanding into markets such as the UK and Europe. They are also exploring a wider product mix, including man-made fibre (MMF) garments alongside traditional cotton-based products.

Tiruppur Exporters’ Association executive secretary Dinesh Babu Ravikrishnan said the industry has increasingly accepted geopolitical uncertainty and tariffs as part of the new business environment.

Some manufacturers are also bringing orders forward and increasing automation to improve productivity and control costs. Reports indicate that apparel exporters are accelerating production of Spring 2027 orders to reduce exposure to future trade disruptions.

Despite the renewed US tariff threat, migrant workers continue to arrive in Tiruppur. The city’s garment industry employs around one million workers, including a large migrant workforce.

The situation highlights how global trade decisions can affect local factories, exporters and workers. For Tiruppur, diversification, cost efficiency and access to new markets are becoming increasingly important as exporters navigate an uncertain global trade environment.