Daybreak How Trump became Indian apparel makers’ unlikely saviour
22 snips
Nov 17, 2025 Tiruppur, India’s knitwear hub, faced a crisis after hefty US tariffs on garment imports. This shock forced manufacturers to rethink their strategies, pivoting to European markets and exploring production in Sri Lanka and Kenya. As they shift from mass-market basics to intricate designs, the industry is investing in automation and cutting costs. Surprisingly, this disruption may catalyze a much-needed evolution in their practices and skills, transforming setbacks into opportunities for growth and modernization.
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Decades Of Comfort Created A Single-Customer Risk
- Tiruppur built factories and processes around huge, repeat US orders that demanded plain, fast, cheap basics.
- The 50% US tariff exposed that reliance and forced a structural reckoning across the cluster.
Factories Scrambled: Discounts And Relocations
- After the tariff, firms scrambled: some cut supply-chain costs while others moved production to Sri Lanka, Kenya, and Bangladesh.
- Soundara, nearly 100% US-dependent, negotiated 5-10% discounts and now plans to shift half its business away from the US.
Market Diversification Is Reshaping Strategy
- Exporters now pivot toward Europe, Australia, the Gulf and Russia to diversify away from the US market risk.
- The India–UK FTA and Europe's fragmented buyers change order sizes and product expectations dramatically.