Tamil Nadu Chief Minister M K Stalin has written to Prime Minister Narendra Modi, cautioning that steep tariffs imposed by the United States on Indian exports have driven some of the state’s most employment-intensive industries towards a severe crisis, with repercussions that could extend across the country.
Stalin pointed to a sharp decline and outright cancellation of international orders, resulting in losses running into thousands of crores of rupees.
Describing the 50 per cent tariffs as “punitive”, Stalin said they are inflicting serious damage on Tamil Nadu’s textile, apparel, leather and footwear sectors, industries that form the backbone of India’s export manufacturing ecosystem and provide employment to millions of workers.
The chief minister noted that Tamil Nadu is the bedrock of India’s textile and apparel export sector, accounting for 28 per cent of the country’s textile exports and employing around 75 lakh workers. He added that the state contributes 40 per cent of India’s leather and footwear exports, providing employment to over 10 lakh workers.
“The current trade stalemate is not merely an economic setback but a looming humanitarian challenge due to the irreparable damage caused by the tariffs. In Tiruppur, the Knitwear Capital of India, exporters have reported a staggering wipe out of ₹15,000 crores in confirmed orders, coupled with enforced production cuts of up to 30% across units. New orders are also drying up at an alarming rate. This has translated into a combined daily loss of ₹60 crores in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur Districts, pushing many Small and Medium enterprises to the brink of collapse. A similar dismal scenario is witnessed in our footwear clusters in Vellore, Ranipet and Tirupatthur Districts,” he said in the letter.
Stalin said the tariffs are squeezing profit margins and forcing exporters to offer steep discounts merely to retain buyers, thereby eroding their competitiveness and long-term viability.
“The ripple effects are profound: lakhs of jobs hang in the balance, with the sectors already witnessing layoffs and wage deferrals that threaten the stability of entire communities. Worse still, international buyers are rapidly diverting orders to competitors like Vietnam, Bangladesh and Cambodia, which have a current tariff advantage over us,” he wrote.
“Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back. This has ominous long-term implications for the future employment prospects of our youth, especially women,” he added.
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