Tiruppur Garment Hub Gets Boost As US Slashes Tariff From 50% To 10%

The US has slashed import duty on Indian garments from a massive 50% down to just 10%, giving Tiruppur's textile industry a much-needed break. Export houses that were barely making any profit are now feeling a new sense of hope.

Image Credit : Google

Tiruppur's textile business

Tiruppur's textile industry just got a huge relief. The US government cut the import duty from a steep 50% to 10%, bringing back confidence among exporters. For months, they faced unpredictable tax changes from the US. But Tiruppur's exporters managed to hold on to their American clients by constantly negotiating. Many firms even took orders at very low profits just to maintain their long-term business ties.

Image Credit : Google

US customs duty reduction

Last August, the US had slapped a customs duty of up to 50% on Indian textiles and clothes. Then, in early February this year, they brought it down to 18%. Just a few weeks later, it was cut again to 10%. This was a big win for American importers whose goods were already on the way, as they only pay the duty when the shipment reaches the US.

Image Credit : Google

Tiruppur exporters

Because of this uncertainty, Tiruppur's exporters had to sit down and renegotiate prices with their American clients. Many companies reworked their price contracts. Most of the exports happen on an FOB (Free on Board) basis. This means the exporter's responsibility ends once the goods are loaded onto the ship. After that, the importer has to handle all the costs.

Image Credit : Google

Garments made in Tiruppur

Garments made in Tiruppur first travel by road to the Thoothukudi port. From there, small ships carry them to larger vessels waiting near Sri Lanka. The entire journey to the US takes about two months. In the 2024-25 financial year alone, Tiruppur exported garments worth around ₹16,000 crore to the US.

Image Credit : Google

Happiness due to customs duty reduction

The Tiruppur Exporters' Association said that during the high-tax period, many companies worked on thin margins or even at a loss. They reportedly lost around ₹1,000 crore because they had to give discounts to their clients. Now that the duty is lower, factory work like cutting, stitching, and packing is back in full swing. But exporters still worry about what future policy changes might bring. For now, though, this is a welcome change for Tiruppur's textile hub.