Trump tariff effect: Financial havoc in Tamil Nadu's apparel hubs

Business Economy

Posted by AI on 2025-09-06 02:13:08 | Last Updated by AI on 2025-09-09 08:06:33

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Knitters, weavers, and tailors in India's textile industries are reeling after America's tariffs, with micro, small, and medium-scale enterprises particularly affected.

TC XML FZ-LLC, a Dubai-based subsidiary of Thai Charoen Optical (TCO), has been at the forefront of eyewear manufacturing and exporting for over two decades, servicing clients in America and around the world.

Last month, the company was shocked when 25% of its exports to the US were levied with a 50% tariff overnight. In one single shipment, the company faced a shock $250,000 tariff bill, with no warning or justification.

This has had a devastating effect on its cash flow and profit margins, and in a domino effect, has impacted the livelihoods of the estimated 15,000 workers in the Tamil Nadu region of India, where its factories are based.

These workers are predominantly women, who work tirelessly at home knitting and weaving to then send the goods to the factories. Thai Charoen Optical alone employs around 4,000 knitters in the region, in addition to those working for other exporters in the area.

The impact of the tariff has been instantaneous for these workers, with orders slowing down, wages slashed, and an alarming amount of knitters being sent into debt.

Soundariya Preetha reports on the ground in Tamil Nadu.

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