CHENNAI: Guidance Tamil Nadu, the apex government body for investment promotion in the state, has pegged the potential loss for TN in 2025-26 due to the 50% US tariff on imports across sectors at $3.93 billion (Rs 34,642 crore). Of this, the potential loss to textile industry, which is the worst-hit, could be $ 1.62 billion (`14,280 crore), a release from the state government said on Saturday.
Citing these concerns, CM MK Stalin has once again appealed to the union government to swiftly act to protect industries dependent on exports, particularly the textiles sector. The release on Saturday also pointed out that while US makes up 20% of the total value of India’s exports, the US accounted for 32% of the value of exports from Tamil Nadu in 2024-25.
Hence, the adverse impact on Tamil Nadu due to the 50% tariff disruption would be far higher, the release added.
The job losses faced by various industries, including textiles, diamonds and jewellery, machineries, and auto parts, could range from 13% to 36% of the existing workforce in these industries. The state government had earlier said that about 30 lakh people may lose employment because of the increase in import tariff.
Highlighting that Tamil Nadu accounted for 28% of the country’s textile exports, the release said Tiruppur, which has led the industry for decades, alone contributed to roughly Rs 40,000 crore of foreign exchange earnings last year.
Women would be worst affected since 65% of the workforce in Tiruppur are women, who work in both textiles and related industries, the release said.
Recalling the letter he wrote to Prime Minister Narendra Modi on August 16, seeking specific and urgent interventions, Chief Minister MK Stalin, in his latest appeal, thanked the union government for the suspension of 11% of customs duty on cotton till December 31.
However, he said that this is only a temporary relief, which cannot be of help until either the new tariff imposed by the US gets revoked or other measures are taken to offset the losses due to these tariffs.