"India's Tirupur knitwear faces US tariff shock as fresh orders stall and old deals renegotiated", 28 August 2025

Tirupur’s knitted apparel exporters are facing a sharp slowdown in business following the US government’s new 25% tariffs...Fresh orders from American buyers have largely stalled, while ongoing deals are being renegotiated, squeezing already tight profit margins.

“...we are witnessing impact of tariff with slowdown or complete pause of fresh orders. Customers are renegotiating previously placed orders but with most small and medium scale enterprises operating with 8-15% margins, it is difficult for us to absorb the cost,” said Alexander Neroth, director of NC John Garments, a Tirupur-based exporter with substantial US business.

Hardik Chheda of Prachi Exports...said it is practically unviable for companies to bear the additional cost. “At best, companies can offer 5% discount on prices, which will have a 7% reduction in landed cost. But some companies are offering discounts without any margins...” he added...

... many industry insiders warn that no market can fully replace the volume of US orders, and prolonged tariffs could lead to job losses in Tirupur, where the textile sector employs roughly 6 lakh people.