CHENNAI: Warning of a looming humanitarian and economic crisis due to the impact of the 50% tariff on Indian exports imposed by the United States, Chief Minister MK Stalin has written a letter to Prime Minister Narendra Modi seeking his urgent intervention to resolve the issue.
He 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 putting lakhs of jobs, particularly those of women, at serious risk.
Explaining in detail how the US tariffs have had a serious impact on TN’s textile and leather industry, the CM said in Tiruppur — the knitwear capital of India — exporters have reported a staggering wipeout of Rs 15,000 crore in confirmed orders, coupled with enforced production cuts of up to 30% across units. New orders are drying up at an alarming rate.
“This has translated into a combined daily loss of Rs 60 crore in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur, pushing many small and medium enterprises to the brink of collapse,” he said.
Orders being given to competitors: CM
“A similar dismal scenario is witnessed in our footwear clusters in Vellore, Ranipet and Tirupattur,” Stalin added. Regarding the US tariffs, the CM said these tariffs are squeezing profit margins and compelling exporters to offer deep discounts just to retain their clientele.
“Lakhs of jobs hang in the balance, with the sectors already witnessing layoffs and wage deferrals. Worse still, international buyers are rapidly diverting orders to competitors like Vietnam, Bangladesh and Cambodia, which have current tariff advantage over us,” the CM underscored the fact that once these markets are lost, regaining them would be an uphill battle.
Making an earnest request in this regard, the CM urged to prioritise the resolution of this issue through a bilateral agreement at the earliest possible juncture.