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50% US levies a humanitarian crisis: Stalin in letter to PM
Tamil Nadu's chief minister warns of a humanitarian crisis due to U.S. tariffs, with exporters facing ₹15,000 crores loss and urgent need for resolution.
The 50% tariff imposed by the U.S. is not merely an economic setback but a looming humanitarian challenge, said chief minister M K Stain in a letter to Prime Minister Narendra Modi citing difficulties among the export hubs in Tamil Nadu and sought an urgent bilateral resolution to the crisis.
In Tiruppur - considered the Knitwear Capital of India - exporters have reported a staggering wipe out of ₹15,000 crores in confirmed orders, coupled with enforced production cuts of up to 30% across units, Stalin said. “New orders are also drying up at an alarming rate. This has translated into a combined daily loss of ₹60 crores in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur Districts, pushing many Small and Medium enterprises to the brink of collapse,” the Tamil Nadu chief minister said. “A similar dismal scenario is witnessed in our footwear clusters in Vellore, Ranipet and Tirupatthur Districts.”
Stalin said that his letter carries a deep sense of urgency and concern regarding the escalating crisis in Tamil Nadu’s export sectors. He added that the State contributes 28% to the nation’s textile exports and employs around 75 lakh workers. It contributes 40% share in India’s leather and footwear exports, employing more than 10 lakh workers.
Exporters have shared that they are compelled to offer discounts to their American clients to retain them which squeezed their profit margins and erodes 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, they say and add that international buyers are rapidly diverting their orders away from TN to competitors such as Vietnam, Bangladesh and Cambodia, which have a current tariff advantage over India.
“Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back. This has ominous long-term implications for the future employment prospects of our youth, especially women,” Stalin said.
“In this context, I implore you to prioritize resolution of this tariff issue through 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. Being confident on your commitment to fostering equitable trade and protecting domestic industries and jobs, I look forward to an early resolution of this impasse.”
