CM Stalin urges PM Modi to mitigate tariff impact on exports

CHENNAI: Chief Minister MK Stalin on Saturday wrote to Prime Minister Narendra Modi, urging Centre’s intervention to address the impact of steep US tariffs on Indian imports, as Tamil Nadu faces disproportionate risks due to its heavy reliance on the American market.

In his letter, Stalin noted that while 20% of India’s total goods exports of $433.6 billion in 2024–25 were directed to the United States, Tamil Nadu’s dependence was higher, with 31% of its $52.1 billion exports bound for that market. “This higher dependency implies that the tariff impact on Tamil Nadu will be significantly greater than for most other Indian states,” he said.

The chief minister highlighted that a 25% tariff, proposed to rise to 50%, would severely affect labour-intensive sectors such as textiles, garments, machinery, auto components, gems and jewellery, leather, footwear, marine products and chemicals. Tamil Nadu, which contributed 28% of India’s textile exports last year, employs nearly 75 lakh people in the sector, of which 30 lakh jobs are at immediate risk, he cautioned.

Seeking relief, Stalin urged the correction of the GST inverted duty structure for man-made fibre, exemption of import duty on all cotton varieties, collateral-free loans under the Emergency Credit Line Guarantee Scheme with interest subvention, and enhancement of export incentives such as RoDTEP benefits.

He also pressed for a special financial package, interest subvention for exporters, and expedited Free Trade Agreements to offset tariff risks. “Tamil Nadu’s manufacturing sector is facing an unprecedented crisis, threatening millions of livelihoods,” the chief minister said, stressing the need for national-level measures in consultation with industry stakeholders.