CHENNAI: Warning of a looming humanitarian and economic crisis due to the impact of the United States’ 50% tariffs on Indian exports, Chief Minister M K Stalin has written to Prime Minister Narendra Modi seeking his urgent intervention to resolve the issue.
The CM stated that the US tariffs have crippled Tamil Nadu’s textile, apparel, and leather sectors, resulting in a loss of Rs 15,000 crore in orders and placing lakhs of jobs, particularly those of women, at serious risk.
Explaining in detail how the US tariffs have had a serious impact on Tamil Nadu's textile and leather industry, the CM, in his letter to the PM, said in Tiruppur, the knitwear capital of India, exporters have reported a staggering wipeout of Rs 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 Rs 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 added.
On the other areas where the US tariffs had a serious impact, the CM said these tariffs are squeezing profit margins and compelling exporters to offer deep discounts just to retain their clientele, thus eroding their competitiveness and viability.
“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,” the CM said and underscored the fact that once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert.
Making an earnest request in this regard, the CM made an earnest request to prioritise the resolution of this tariff issue through a bilateral agreement at the earliest possible juncture.
“A swift decision would not only revive our exporters' fortunes but also reinforce India's position as a reliable global manufacturing hub. I look forward to an early resolution of this impasse,” he added.