Tamil Nadu Crisis: How US Tariffs Threaten Millions of Jobs in Textile, Leather Hubs

In a detailed letter to Prime Minister Narendra Modi, CM Stalin urged immediate and decisive diplomatic intervention to mitigate what he warned could become a humanitarian and economic disaster.

Stalin said Tamil Nadu, the backbone of India's textile and leather exports, is bearing the brunt of the tariffs. The state accounts for 28 per cent of the country's textile exports and employs nearly 75 lakh workers in the sector. It also contributes around 40 per cent of leather and footwear exports, providing jobs to over 10 lakh people.

According to the letter, the impact has already been severe. Exporters in Tiruppur, known as the knitwear capital of India, have reported a loss of confirmed orders worth Rs 15,000 crore, while production cuts across units have touched 30 per cent. Daily losses of close to Rs 60 crore have been reported in textile hubs spanning Tiruppur, Coimbatore, Erode and Karur.

Small and Medium Enterprises, which make up the bulk of exporters, are said to be facing existential threats, with many on the verge of shutdown.

The Chief Minister warned that the consequences are spiralling beyond economic distress.

Wage deferments and workforce reductions have begun surfacing, destabilising the livelihoods of lakhs of families dependent on the sector.

Leather and footwear clusters in Vellore, Ranipet and Tirupattur are also facing similar setbacks, deepening concerns over prolonged unemployment.

Stalin also pointed out that international buyers are shifting orders to competing nations such as Vietnam, Bangladesh and Cambodia, which currently enjoy a tariff advantage.

Once global supply chains shift, he cautioned, reclaiming lost markets would be extremely difficult, posing long-term challenges to youth and women workers who dominate the sector.

Terming the situation "urgent and grave", CM Stalin urged the Prime Minister to give the issue priority in bilateral negotiations with the US and seek a resolution that could revive market confidence and prevent the collapse of export clusters.

He said timely intervention would not only safeguard Tamil Nadu's industrial livelihoods but also reinforce India's credibility as a reliable global manufacturing base.

Expressing confidence in the Centre's commitment to protecting domestic industry and jobs, Stalin ended the letter with a call for swift action to end the impasse.

- IANS