The chief minister urged the prime minister to prioritise resolving the issue through a bilateral agreement at the earliest possible juncture.
Published Dec 18, 2025 | 9:13 AM ⚊ Updated Dec 18, 2025 | 9:13 AM
MK Stalin with Narendra Modi. (Twitter)
Synopsis: Tamil Nadu Chief Minister MK Stalin wrote to Prime Minister Narendra Modi, highlighting the industrial crisis in the state triggered by the 50 percent tariffs imposed by the United States on Indian exports. The chief minister urged the prime minister to prioritise resolving the issue through a bilateral agreement at the earliest possible juncture.
Tamil Nadu Chief Minister MK Stalin, on Thursday, 18 December, wrote to Prime Minister Narendra Modi highlighting the industrial crisis in the state triggered by the 50 percent tariffs imposed by the United States on Indian exports.
Stalin noted a drastic decrease and cancellation of international orders, causing losses mounting to thousands of crores of rupees. The chief minister urged the prime minister to prioritise resolving the issue through a bilateral agreement at the earliest possible juncture.
“A swift decision would not only revive our exporters’ fortunes but also reinforce India’s position as a reliable global manufacturing hub. Being confident on your commitment to fostering equitable trade and protecting domestic industries and jobs, I look forward to an early resolution of this impasse,” Stalin wrote.
The chief minister noted that Tamil Nadu is the bedrock of India’s textile and apparel sector exports, contributing 28 percent to the nation’s textile exports and employing around 75 lakh workers. He added that the state has a 40 percent share in 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 wipe out of ₹15,000 crores in confirmed orders, coupled with enforced production cuts of up to 30% across units. New orders are also drying up at an alarming rate. This has translated into a combined daily loss of ₹60 crores in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur Districts, pushing many Small and Medium enterprises to the brink of collapse. A similar dismal scenario is witnessed in our footwear clusters in Vellore, Ranipet and Tirupatthur Districts,” he said in the letter.
Stalin said the tariffs are squeezing profit margins and compelling exporters to offer deep discounts just to retain their clientele, thus eroding their competitiveness and viability.
“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,” he wrote.
“Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back. This has ominous long-term implications for the future employment prospects of our youth, especially women,” he added.
