Money

Walmart, Costco Turn to India to Avoid High Tariffs

May 11, 2025 - By 4idiotz

Article Summary

A garment hub in south India, Tiruppur, is gaining popularity among US retailers such as Walmart and Costco who are looking to avoid higher tariffs faced by suppliers from Bangladesh and China. This shift towards Indian manufacturers is due to various factors including the improved infrastructure, skilled workforce, and favorable tax policies in the region.

What This Means for You

If you’re a consumer, you can expect to see more “Made in India” labels on clothing sold at your favorite retailers as they shift their supply chains to take advantage of the new tariff structure.
If you’re a business owner or entrepreneur in the textile industry, it’s worth considering the benefits of working with Indian manufacturers, who are becoming increasingly competitive in the global marketplace.
If you’re a policy maker, this trend highlights the importance of creating a favorable business environment to attract foreign investment and encourage economic growth.
Moving forward, it’s essential to stay informed about changing tariffs and trade policies, as they can have a significant impact on the global supply chain and the products available to consumers.

Original Post

In a garment hub in south India, R.K. Sivasubramaniam is fielding requests from Walmart and Costco who want to sidestep higher U.S. tariffs faced by rival Asian suppliers, Bangladesh and China.

Tiruppur, a city in southern India famous for its knitted garments, is experiencing a surge in interest from U.S. retailers looking to avoid the impact of tariffs on Chinese and Bangladeshi-made garments.

“I’ve had inquiries from both Walmart and Costco about shifting their orders to us,” said R.K. Sivasubramaniam, chief executive officer of Pioneer Embroideries in Tiruppur.

Tiruppur’s competitive advantage lies in its skilled workforce, improved infrastructure, and tax policies, making it an attractive alternative to other Asian suppliers.