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Chennai: Tamil Nadu CM MK Stalin on Thursday wrote to Prime Minister Narendra Modi, seeking urgent intervention over the impact of the 50 per cent tariffs imposed by the United States on Indian exports. He said the decision has caused serious disruption to Tamil Nadu’s export-oriented industries, especially textiles, garments and leather goods.
In his letter, Stalin said the tariffs have created a major crisis for the State’s economy, which plays a key role in India’s export sector. He said the situation requires immediate attention as the damage to exporters is increasing rapidly. “I am writing with a deep sense of urgency and concern about the growing crisis in Tamil Nadu’s export sectors, caused by the punitive 50 per cent tariffs imposed by the United States on Indian exports,” he stated.
The Chief Minister highlighted Tamil Nadu’s importance in the national export landscape, pointing out that the State contributes nearly 28 per cent of India’s textile exports and about 40 per cent of leather and footwear exports. These sectors together provide employment to more than 85 lakh people. Stalin warned that the issue has gone beyond being just an economic problem and is now becoming a serious social concern. He said the damage caused by the tariffs could have long-lasting effects on livelihoods.
“The current trade deadlock is not just an economic setback but is turning into a humanitarian challenge due to the severe and lasting harm caused by these tariffs,” he said.
Referring to Tiruppur, widely known as the Knitwear Capital of India, Stalin said exporters in the region have reported large-scale losses. According to him, confirmed export orders worth around Rs 15,000 crore have been cancelled. He added that many units have been forced to cut production by as much as 30 per cent due to the sharp fall in demand.
The Chief Minister said fresh orders are declining at a worrying pace, leading to an estimated daily revenue loss of Rs 60 crore across Tiruppur, Coimbatore, Erode and Karur districts. He warned that this situation has pushed several small and medium enterprises close to shutting down.
Stalin also said that footwear manufacturing hubs in Vellore, Ranipet and Tirupatthur districts are facing similar difficulties. Exporters in these regions are being compelled to offer heavy discounts to hold on to international buyers.
He also warned about social impact of the crisis and said that lakhs of jobs are at risk. Reports of layoffs and delayed wages have already started to emerge, he said. Stalin also expressed concern that global buyers are shifting their orders to countries such as Vietnam, Bangladesh and Cambodia, which currently have lower tariffs. He warned that once these markets are lost, it would be extremely difficult to regain them, as global supply chains rarely return to previous suppliers.
Urging immediate diplomatic engagement, the Chief Minister asked the Prime Minister to take up the issue on priority through bilateral discussions with the United States. “I request you to prioritise the resolution of this tariff issue through a bilateral agreement at the earliest,” he wrote, adding that timely action would help revive the export sector and reinforce India’s reputation as a dependable global manufacturing destination.
Stalin said he was confident that the Prime Minister would take steps to safeguard domestic industries and protect employment. He added that he was hopeful of an early solution to the issue. The letter comes in the backdrop of the US imposing a 25 per cent tariff on Indian imports, along with an additional 25 per cent linked to India’s purchase of Russian crude oil.
