Chennai (Tamil Nadu) [India], December 18 : Tamil Nadu Chief Minister MK Stalin on Thursday urged Prime Minister Narendra Modi to address the impact of the "50 per cent tariffs" imposed by the United States on Indian exports, warning that the move has triggered a severe crisis in the State's major export-driven sectors, particularly textiles, apparel and leather.
In his letter, Stalin described the situation as an "escalating crisis" for Tamil Nadu's economy, underlining the State's critical role in India's export ecosystem.
"I am writing to you with a deep sense of urgency and concern regarding the escalating crisis in Tamil Nadu's export sectors, triggered by the punitive 50 per cent tariffs imposed by the United States on Indian exports," the Chief Minister wrote.
Highlighting Tamil Nadu's contribution to national exports, Stalin noted that the State accounts for 28 per cent of India's textile exports and around 40 per cent of leather and footwear exports, together employing more than 85 lakh workers. He cautioned that the current trade impasse was no longer just an economic issue but was fast turning into a humanitarian concern.
"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.
Drawing attention to the impact on Tiruppur, known as the Knitwear Capital of India, Stalin said exporters in the region had reported a massive loss of confirmed orders.
"In Tiruppur... exporters have reported a staggering wipe out of Rs 15,000 crores in confirmed orders, coupled with enforced production cuts of up to 30 per cent across units," the letter read.
He added that new orders were "drying up at an alarming rate," resulting in a combined daily revenue loss of Rs 60 crore across Tiruppur, Coimbatore, Erode and Karur districts, pushing several small and medium enterprises to the brink of collapse.
The Chief Minister said a similar grim situation was unfolding in footwear manufacturing clusters in Vellore, Ranipet and Tirupatthur districts. He asserted that exporters are being forced to offer deep discounts to retain buyers, severely eroding profit margins and long-term viability.
Stalin also warned of the social consequences of the crisis, stating that "lakhs of jobs hang in the balance," with reports of layoffs and wage deferrals already emerging. He expressed concern that international buyers were rapidly diverting orders to competing countries such as Vietnam, Bangladesh and Cambodia, which currently enjoy a tariff advantage.
"Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back," he cautioned.
Calling for swift diplomatic action, the Chief Minister urged the Prime Minister to prioritise resolving the issue through a bilateral agreement.
"I implore you to prioritise resolution of this tariff issue through bilateral agreement at the earliest possible juncture," Stalin wrote, adding that a timely decision would help revive exporters' fortunes and strengthen India's image as a reliable global manufacturing hub.
Expressing confidence in the Prime Minister's commitment to protecting domestic industries and jobs, Stalin said he was looking forward to an early resolution of the impasse.
This comes after the US imposed a 25 per cent tariff on Indian imports, supplemented by an additional 25 per cent due to India's purchase of Russian crude oil.