CM Stalin writes to PM Modi seeking resolution of U.S. tariffs hitting Tamil Nadu exports

Following up on his earlier representations, Tamil Nadu Chief Minister M.K. Stalin on Thursday (December 18, 2025) wrote to Prime Minister Narendra Modi reiterating his request for the resolution of the issue of the 50% tariffs imposed by the United States of America (USA). He went on to list how Tamil Nadu has been affected by the issue. The tariffs have translated into a “combined daily loss of ₹60 crore in revenue” for exporters across various districts of Tamil Nadu, he said.

Flagging a “deep sense of urgency and concern” over the escalating crisis in Tamil Nadu’s export sectors following the U.S.’ imposition of the tariffs on Indian exports, Mr. Stalin said the State formed the backbone of India’s textile and apparel exports. Tamil Nadu accounted for 28% of the country’s textile exports and provided employment to around 75 lakh workers. He added that the State also contributed nearly 40% of India’s leather and footwear exports, employing over 10 lakh workers.

“The current trade stalemate is not merely an economic setback but a looming humanitarian challenge due to the irreparable damage caused by the tariffs. In Tiruppur – the Knitwear Capital of India – exporters have reported a staggering wipeout of ₹15,000 crore in confirmed orders, coupled with enforced production cuts of up to 30% across units. New orders are also drying up at an alarming rate,” Mr. Stalin said.

The tariffs have translated into a “combined daily loss of ₹60 crore in revenues” for exporters in Tiruppur, Coimbatore, Erode, and Karur districts, pushing many small and medium enterprises to the brink of collapse. A similarly dismal scenario is being witnessed in the footwear clusters of Vellore, Ranipet and Tirupattur districts, Mr. Stalin said.

Loss of markets

These tariffs were squeezing profit margins and compelling exporters to offer deep discounts just to retain their clientele, thus eroding their competitiveness and viability, the Chief Minister said. “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. Worse still, international buyers are rapidly diverting orders to competitors like Vietnam, Bangladesh, and Cambodia, which have a current tariff advantage over us.”

Once these markets were lost, “regaining them would be an uphill battle, as entrenched supply chains rarely revert back,” Mr. Stalin pointed out, and added that it has “ominous long-term implications for the future employment prospects of our youth, especially women.”

Mr. Stalin further implored the Prime Minister to prioritise resolution of this tariff issue through a bilateral agreement at the earliest. “A swift decision would not only revive our exporters’ fortunes but also reinforce India’s position as a reliable global manufacturing hub. Being confident in your commitment to fostering equitable trade and protecting domestic industries and jobs, I look forward to an early resolution of this impasse.”