There is growing concern that competing nations such as Ecuador and Indonesia, which face much lower tariffs, may take away India’s market share.
Published Aug 28, 2025 | 2:17 PM ⚊ Updated Aug 28, 2025 | 2:17 PM
Shrimps. (iStock)
The sudden hike in US import tariffs has severely impacted Tamil Nadu’s key export sectors, with seafood and leather industries facing heavy losses, production cuts and the threat of large-scale job losses.
The US has doubled duties on Indian goods, pushing the overall tariff burden close to 60 percent, and exporters across the state are struggling to cope.
Seafood exporters in Thoothukudi and other coastal districts have already reduced production by nearly half. With frozen shrimp forming the bulk of exports, shipments to the US have slowed and rerouting through longer sea routes has increased costs.
There is growing concern that competing nations such as Ecuador and Indonesia, which face much lower tariffs, may take away India’s market share.
The leather industry, which provides major employment in districts like Vellore, Ranipet and Ambur, is also under severe strain. Nearly a third of Tamil Nadu’s leather exports go to the US, and some companies rely on the American market for as much as 60 per cent of their sales.
With buyers demanding steep discounts, exporters are being forced to sell at reduced margins, and new orders from the US have slowed down. Industry representatives warn that nearly 75,000 jobs could be at risk if the tariffs remain in place for long.
Exporters in both seafood and leather sectors have expressed concern over the lack of immediate support and are calling for urgent relief measures.
Demands include soft loans, subsidised credit, faster clearance of export refunds, temporary concessions in power tariffs, freight support to open up new markets, and reskilling assistance for affected workers.
There is also pressure for moratoriums on loan repayments and expansion of export credit guarantees to help firms withstand the sudden losses.
Political voices have also highlighted the severity of the situation. It has been stressed that the tariff hike is not just a trade issue but a direct challenge to the livelihoods of Indian exporters and workers.
Suggestions have been made that governments must provide emergency relief while also treating the crisis as an opportunity to secure India’s place in future global supply chains in sectors such as electronics, batteries, textiles and rare earths.
With shipments slowing, production being scaled down and employment under threat, Tamil Nadu’s export economy faces a turbulent period.
Industry bodies caution that if immediate steps are not taken, the state could lose significant ground to international competitors, with long-term consequences for both business and workers.
