"Tamil Nadu Will Be Hit Harder": MK Stalin On Trump Tariffs

Tamil Nadu Chief Minister M K Stalin has written to Prime Minister Narendra Modi, warning that the steep US tariff hikes on Indian imports could deal a crippling blow to the state's export-driven economy and put millions of livelihoods at risk. He urged the Centre to roll out a comprehensive national relief package for exporters, coupled with fast-tracking Free Trade Agreements, to cushion India against tariff shocks.

In his letter, Mr Stalin highlighted that while 20 per cent of India's total goods exports of $433.6 billion went to the United States last year, Tamil Nadu's dependence is far higher, with 31 per cent of its $52.1 billion exports heading to the US.

"This higher dependency means Tamil Nadu will be disproportionately affected," he cautioned, underscoring that sectors like textiles, apparel, machinery, auto components, leather, marine products and chemicals - all labour-intensive - could face mass layoffs.

"Tamil Nadu will be hit harder than most states as our exports are deeply tied to the US market," he said.

With US tariffs rising from 25% to a possible 50%, Tamil Nadu will be hit harder than most states as our exports are deeply tied to the US market. Lakhs of jobs in textiles, leather, auto, machinery and other sectors are at risk.

I have urged the Hon'ble PM Thiru. @NarendraModi… pic.twitter.com/WWPntAOluc

— M.K.Stalin (@mkstalin) August 16, 2025

Pointing to the textile sector alone, which employs 75 lakh people and contributes 28 per cent of India's textile exports, Mr Stalin warned that nearly 30 lakh jobs could be at immediate risk if the current 25 per cent US tariff is escalated to 50 per cent.

The Chief Minister sought urgent intervention from the Centre, proposing a series of measures to protect exporters. These include correcting the inverted duty structure in the man-made fibre value chain by bringing it under a uniform 5 per cent GST, exempting import duty on all varieties of cotton, extending collateral-free loans under the Emergency Credit Line Guarantee Scheme with interest subvention and moratorium, and enhancing RoDTEP benefits to 5 per cent.

He also pressed for a broader relief package on the lines of Brazil, which recently announced tax deferrals and credits to help its exporters. "Tamil Nadu's thriving manufacturing sector faces a never-before-seen crisis," Mr Stalin warned, assuring the Centre of the state's full cooperation in implementing urgent measures to mitigate the crisis.