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, imposed by President Donald Trump, 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 (Rs 14,280 crore), a release from the state government said on Saturday.
Citing these concerns, Chief Minister MK Stalin has once again appealed to the union government to swiftly act to protect industries dependent on exports, particularly the textile sector. The release also pointed out that while the US makes up 20% of the total value of India’s exports, the country accounted for 32% of the value of exports from TN in 2024-25. Hence, the adverse impact on TN due to the 50% tariff disruption would be far higher, the release added.
The job losses faced by industries — including textiles, diamonds and jewellery, machineries, and auto parts — could range from 13% to 36%.
30 lakh may lose jobs in TN owing to US import tariff
The state government had earlier said that about 30 lakh people may lose jobs 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 the PM, Stalin, in his latest appeal, thanked the union government for the suspension of 11% of customs duty on cotton till December 31. However, this is only a temporary relief, which cannot be of help until either the new US tariff gets revoked or other measures are taken to offset the losses due to these tariffs, he said.
Stalin assured TN’s cooperation to work together and said the state industries have shown resilience during GST and Covid-19 disruptions.
“This resilience cannot be mistaken for invulnerability. The union government must act swiftly to bring forward a unified policy response that delivers immediate relief to the affected sectors,” he said.
“With unity and timely action, India can protect its exporters and rise stronger,” he added.
