Tiruppur textile hub faces uncertainty over new US tariff laws

The textile hub of Tiruppur, India, faces renewed economic uncertainty following the signing of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by President Donald Trump. The law allows for tariffs of up to 100 per cent on countries that import Russian oil and gas, placing major buyers like India and China on notice.

This follows a period of instability between August and December 2025, when a 50 per cent US tariff threat led to cancelled orders, factory closures, and mass layoffs of migrant contract labourers. While the industry saw a temporary recovery in early 2026, the new legislation introduces a legal framework for much higher penalties.

Because approximately 35 per cent of Tiruppur’s exports are directed to the US market, the potential for increased tariffs poses a significant risk to the region's garment and hosiery units. While the specific rates and implementation details for India have not yet been decided, the shift from executive action to codified law has heightened concerns for the export-oriented sector.