Tamil Nadu CM urges PM Modi to address US tariffs
What's the story
Tamil Nadu Chief Minister MK Stalin has expressed grave concern over the potential increase of US tariffs on India from 25% to 50%. He said this move would hit Tamil Nadu harder than other states as its exports are heavily dependent on the US market. In a post on X, he warned that "Lakhs of jobs in textiles, leather, auto, machinery and other sectors are at risk."
Urgent measures
Urgent measures needed to mitigate tariff impact
Stalin has urged Prime Minister Narendra Modi to take immediate steps to mitigate the impact of these tariffs. He suggested fixing GST on man-made fibers at 5%, removing duty on cotton imports, and extending easy, low-interest loans with a moratorium. "I have urged the Hon'ble PM Thiru. Narendra Modi to act swiftly by fixing GST on man-made fibers at 5%," he said in his post.
Trade crisis
Special interest subvention scheme for exporters sought
The US tariffs have triggered an unprecedented crisis for Tamil Nadu's manufacturing sector, endangering lakhs of jobs across sectors. Stalin has sought PM Modi's immediate intervention in this matter, in consultation with the relevant ministries and industry stakeholders. He suggested that the Center could introduce a special interest subvention scheme for all exporters affected by tariffs to improve liquidity and reduce cost burdens.
Twitter Post
Take a look at CM Stalin's post
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.
— M.K.Stalin (@mkstalin) August 16, 2025
I have urged the Hon’ble PM Thiru. @NarendraModi… pic.twitter.com/WWPntAOluc
Economic impact
Tariff impact on various sectors
Stalin highlighted Tamil Nadu's high dependence on the US market, noting that in the last fiscal year, 31% of the state's goods exports went there. This makes it more vulnerable to tariff impacts than most other Indian states. The sectors most affected by these tariffs include textiles, apparel, machinery, auto components, gems, and jewelry, among others.
Sectoral impact
Textiles sector at immediate risk
Stalin also pointed out that Tamil Nadu accounts for 28% of India's textile exports, the highest among all Indian states. He warned that with a 25% tariff and a proposed 50% tariff, an estimated 30 lakh jobs in this sector are at immediate risk. To mitigate this crisis, he stressed the need to address structural issues that have long hindered export competitiveness.