CHENNAI: From thousands of small and medium enterprises in textile and leather pushed to the brink of collapse to lakhs of jobs consequently hanging in balance, the punitive 50 per cent tariff imposed by the United States on exports from India is not merely an economic challenge but a looming humanitarian challenge, cautioned Chief Minister MK Stalin, urging Prime Minister Narendra Modi to immediately intervene and resolve the issue.
In a letter to the Prime Minister on Thursday, Stalin expressed his deep sense of urgency and concern over the crisis faced by exporters in Tamil Nadu, particularly the textile, leather and footwear sectors. The State accounts for 28 per cent of textile and 40 per cent share in leather and footwear exports, both of which are now reeling under the tariff imposed by President Donald Trump.
Citing an example, the chief minister said exporters in Tirupur, called the knitwear capital of India, have reported a staggering loss of Rs 15,000 crore in confirmed orders. And, with new orders drying up at an alarming rate, these units were forced to enforce production cuts up to 30 per cent.
“This has translated into a combined daily loss of Rs 60 crore in revenues for exporters in Tirupur, Coimbatore, Erode and Karur districts, pushing many small and medium enterprises to the brink of collapse. A similar dismal scenario is witnessed in our footwear clusters in Vellore, Ranipet and Tirupattur districts,” he said.
Pushed to a corner by tariffs, exporters are compelled to offer deep discounts to retain clients, which is eroding their viability. “The ripple effects are profound: lakhs of jobs hang in the balance, with the sectors already witnessing layoffs and wage deferrals that threaten the stability of entire communities.”
This is not merely a short-term hurdle, but could prove to be disastrous in the long run, Stalin warned. International buyers are rapidly diverting orders to competitors like Vietnam, Bangladesh and Cambodia, which have a tariff advantage over India. “Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert. This has ominous long-term implications for the future employment prospects of our youth, especially women.”
In the letter, the chief minister urged Prime Minister Narendra Modi to prioritise the resolution of tariff deadlock through a 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,” Stalin added.