Indian textile exporters are facing a severe crisis after the United States imposed a steep 50% tariff on imports, a move expected to cause revenue losses and threaten nearly five lakh jobs. With 28% of India’s textile and apparel exports destined for the US, the impact could be devastating.

Exporters in Tiruppur, India’s knitwear hub, are rushing shipments worth nearly ₹2,000 crore monthly to beat the August 27 deadline, after which tariffs double. Industry groups warn that goods landing in the US after September 17will face punitive duties.

“This is damage control mode,” said Kumar Duraiswamy of the Tiruppur Exporters Association. “We cannot sustain exports at 50% tariffs. Orders are being halted and factories may be forced to shut.”

The Confederation of Indian Textile Industry (CITI) estimates exports worth $11 billion will be hit. Its Secretary General, Chandrima Chatterjee, said the industry is grappling with uncertainty as US buyers stop placing fresh orders.

Major firms like Creative Group fear factory closures. Chairman Vijay Kumar Agarwal said, “We may shut two units, affecting 6,000–7,000 workers. At these tariffs, exports to the US will collapse.”

India’s textile sector employs over 100 million people directly and indirectly. Workers earning ₹15,000–18,000 a monthare most at risk if factories downsize.

Global competition worsens the challenge, with Vietnam and Bangladesh facing only 20% tariffs. Buyers may shift orders to these countries, warned FIEO President SC Ralhan.

Exports to the US in 2024–25 stood at $10.8 billion, with apparel alone worth $5.3 billion. Tariffs are now expected to raise the effective rate to 63.9%.

Industry leaders hope the Indian government will intervene. Measures under consideration include a ₹2,500 crore Export Promotion Mission and scrapping of the 11% duty on cotton.

Despite fears of factory closures, exporters remain cautiously optimistic that tariffs are temporary and that ongoing India-US trade negotiations will provide relief in the coming months.