Chennai: Tamil Nadu has raised fresh concerns over the steep 50 per cent tariff imposed by the US on imports, warning that the state could lose as much as $3.93 billion (Rs 34,642 crore) in 2025-26.Guidance
Tamil Nadu, the state’s investment promotion agency, has estimated that the textile sector alone may face losses worth $1.62 billion (Rs 14,280 crore), making it the worst-hit industry.
In a statement released by the CMO, Chief Minister M.K. Stalin has cited the alarming projections and renewed his appeal to the Union government to step in and protect export-driven industries, particularly textiles. The state’s note highlighted that while the US accounts for about 20 per cent of India’s overall exports, the share of US-bound exports from Tamil Nadu was much higher at 32 per cent in 2024-25.
This, it argued, makes Tamil Nadu disproportionately vulnerable to the trade disruption.The fallout of the tariff hike is expected to ripple across multiple industries, including textiles, jewellery, machinery, and auto components, with potential job losses ranging between 13 per cent and 36 per cent of the existing workforce.
The state government has previously warned that nearly 30 lakh people could lose employment if the situation persists. Tamil Nadu contributes 28 per cent of India’s total textile exports, with Tiruppur serving as the hub of this sector.The knitwear capital generated around Rs 40,000 crore in foreign exchange earnings last year alone.
The government's release further underscored that women would bear the brunt of the crisis, as they make up 65 per cent of the workforce in Tiruppur’s textile and allied industries.
Recalling his earlier letter to Prime Minister Narendra Modi on August 16, CM Stalin once again pressed for urgent and specific measures.While he welcomed the Union government’s suspension of the 11 per cent customs duty on cotton imports until December 31, he noted that the relief was only temporary. “This step offers limited respite. The broader crisis can only be addressed if the US tariff is revoked or if alternative mechanisms are introduced to offset the impact,” the statement said.
The Chief Minister warned that unless the Centre moves quickly with a comprehensive plan, the tariff shock could cripple Tamil Nadu’s export backbone, wiping out thousands of jobs and deepening social distress in one of India’s most industrially vibrant states.
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