15,000 Crores Loss, Production Cut: MK Stalin Writes To PM Modi On US Tariffs

Tamil Nadu Chief Minister MK Stalin has written to Prime Minister Narendra Modi flagging what he describes as an escalating crisis in the state's export-driven industries following the United States' decision to impose punitive 50 per cent tariffs on Indian goods. In a strongly worded  letter, Stalin urged the Centre to urgently pursue a bilateral resolution, warning of severe economic and social consequences if the issue remains unresolved.

Highlighting Tamil Nadu's central role in India's manufacturing ecosystem, the Chief Minister noted that the state accounts for 28 per cent of the country's textile and apparel exports and nearly 40 per cent of leather and footwear exports. These sectors together employ close to 85 lakh workers, making them critical not just to the state's economy but also to national employment.

The impact, Stalin said, has been particularly acute in western Tamil Nadu, a region anchored by industrial hubs such as Coimbatore, Tiruppur, Erode and Karur. Coimbatore, often referred to as the "Manchester of Tamil Nadu", and its adjoining districts form the backbone of the state's textile and engineering industries. According to the Chief Minister, exporters in Tiruppur alone have seen confirmed orders worth Rs 15,000 crore wiped out, alongside production cuts of up to 30 per cent. He estimated a combined daily revenue loss of nearly Rs 60 crore across major clusters in the region.

A similar downturn is being witnessed in leather and footwear hubs such as Vellore, Ranipet and Tirupatthur, with small and medium enterprises facing the risk of closure. Stalin cautioned that shrinking margins, deep discounting and loss of competitiveness were already triggering layoffs and wage deferrals, threatening the livelihood of entire communities. He also warned that international buyers were diverting orders to countries such as Vietnam, Bangladesh and Cambodia, raising concerns about long-term erosion of India's market share.

Beyond economics, the issue carries political significance. Western Tamil Nadu has traditionally been an AIADMK stronghold, and the ruling DMK is seeking to make electoral inroads in the region ahead of the Assembly polls. Against this backdrop, the party has also announced a massive women's mobilisation event scheduled for December 29 led by parliamentary party leader MK Kanimozhi.

Appealing to the Prime Minister's commitment to protecting domestic industries, Stalin said a swift resolution would reinforce India's credibility as a global manufacturing hub and safeguard millions of jobs in Tamil Nadu.