Stalin seeks solution to US tariff issue, warns of layoffs in textiles

Stalin said the impact is spreading across districts, with exporters in Tiruppur, Coimbatore, Erode and Karur facing a combined daily revenue loss of ₹60 crore

Tamil Nadu Chief Minister M K Stalin has written to Prime Minister Narendra Modi seeking an immediate solution to the US tariff issue through a bilateral agreement, warning of mass layoffs in the state’s export sectors such as textiles.

 

In his letter, Stalin said exporters in Tiruppur — known as India’s knitwear hub — have reported a wipeout of Rs 15,000 crore in confirmed orders, along with production cuts of up to 30 per cent across units. “These tariffs are squeezing profit margins and compelling exporters to offer deep discounts just to retain their clientele, thus eroding their competitiveness and viability,” he said.

 

 

Stalin said the impact is spreading across districts, with exporters in Tiruppur, Coimbatore, Erode and Karur facing a combined daily revenue loss of Rs 60 crore, pushing many small and medium enterprises to the brink. He said a similar situation is unfolding in footwear clusters in Vellore, Ranipet and Tirupatthur.

 

He attributed the disruption to a “punitive” 50 per cent tariff imposed by the US on Indian exports, stating that new orders are drying up rapidly and existing demand is being diverted to competing markets.

 

“This comes at a time when orders to Tiruppur are getting diverted to competitors like Vietnam, Bangladesh and Cambodia, which have a current tariff advantage,” Stalin said. He warned that once markets are lost, regaining them would be difficult as supply chains tend to get entrenched.

 

Tamil Nadu contributes 28 per cent of India’s textile exports and employs around 7.5 million workers in the sector, Stalin said. It also accounts for about 40 per cent of India’s leather and footwear exports, employing over 1 million 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 said, adding that the situation could have long-term implications for employment, particularly for young people and women.

 

“A swift decision would not only revive our exporters’ fortunes but also reinforce India’s position as a reliable global manufacturing hub,” Stalin said, urging an early resolution of what he described as an impasse.