MK Stalin Warns PM Modi of Crisis as US Imposes 50% Tariffs on Indian Exports
Stalin warns PM of job losses from US tariffs on exports.
Tamil Nadu Chief Minister MK Stalin has issued a stark warning to Prime Minister Narendra Modi about an emerging humanitarian and economic crisis precipitated by the United States' decision to impose 50% tariffs on Indian exports. In a comprehensive letter, Stalin highlighted the urgent need for central government intervention through diplomatic channels to mitigate the devastating effects already evident in the state's export-dependent industries.
The punitive tariffs have delivered a severe blow to Tamil Nadu's vital textile, apparel, and leather sectors, resulting in the abrupt cancellation of export orders amounting to Rs 15,000 crore. This substantial loss not only disrupts established supply chains but also endangers lakhs of jobs, with a disproportionate impact on women workers who form the backbone of these labour-intensive industries in rural and semi-urban regions.
Particularly acute distress is observed in Tiruppur, widely regarded as India's knitwear capital, where exporters have reported a complete erasure of previously confirmed orders worth Rs 15,000 crore. Manufacturing units have been compelled to implement production cuts reaching up to 30%, while the collective daily revenue shortfall for exporters across Tiruppur, Coimbatore, Erode, and Karur has escalated to Rs 60 crore, placing numerous small and medium enterprises on the verge of insolvency as incoming orders continue to plummet.
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The footwear manufacturing clusters in Vellore, Ranipet, and Tirupattur districts are experiencing parallel challenges, with compressed profit margins forcing exporters to extend significant discounts merely to preserve existing customer relationships. Compounding the crisis, international buyers are swiftly reallocating orders to rival nations such as Vietnam, Bangladesh, and Cambodia, which currently enjoy favourable tariff positions relative to India.
Stalin underscored the irreversible nature of market share erosion once lost to competitors and appealed to the Prime Minister to accord highest priority to securing a bilateral trade agreement that addresses the tariff impasse without delay. Such proactive measures are essential to protect the livelihoods of millions dependent on these sectors and to prevent a broader economic downturn in one of India's most industrially vibrant states.
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