Tamil Nadu CM Urges PM Modi To Address US Tariffs Impacting Exports

Tamil Nadu Chief Minister M.K. Stalin has urged Prime Minister Narendra Modi to intervene over the 50 per cent tariffs recently imposed by the United States on Indian exports, warning that the levies have triggered a severe crisis in the State’s major export-driven sectors, particularly textiles, apparel and leather.

In a letter to the Prime Minister, Stalin described the situation as an escalating crisis for Tamil Nadu’s economy, emphasizing the State’s critical contribution to India’s export ecosystem. He noted that Tamil Nadu accounts for 28% of India’s textile exports and around 40% of leather and footwear exports, supporting over 85 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,” he wrote.

Stalin highlighted the impact on key industrial hubs. In Tiruppur, India’s knitwear capital, exporters have reported a loss of Rs 15,000 crore in confirmed orders and production cuts of up to 30 per cent. New orders are reportedly drying up, leading to daily revenue losses of Rs 60 crore across Tiruppur, Coimbatore, Erode and Karur districts. Similar challenges are affecting footwear clusters in Vellore, Ranipet and Tirupattur with exporters forced to offer deep discounts, eroding profit margins.

The Chief Minister also warned of the social consequences, citing layoffs and wage deferrals, and noted that international buyers are increasingly shifting orders to Vietnam, Bangladesh and Cambodia, countries benefiting from a tariff advantage. “Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back,” he cautioned.

Stalin called for swift diplomatic action, urging the Prime Minister to resolve the issue through a bilateral agreement to revive exporters’ fortunes and reinforce India’s position as a reliable manufacturing hub. He expressed confidence in the Prime Minister’s commitment to protecting domestic industries and jobs, stressing the importance of an early resolution.

The US tariffs comprise a 25% levy on Indian imports, along with an additional 25% surcharge linked to India’s purchase of Russian crude oil, intensifying concerns among exporters in Tamil Nadu and across the country.