Tamil Nadu could suffer an export loss of Rs. 34,642 crore (US $ 3.93 billion) in 2025–26 following the 50% tariff imposed by the United States across sectors, according to estimates by Guidance Tamil Nadu, the state’s apex investment promotion body. Of this, the textile sector alone could account for Rs. 14,280 crore (US $ 1.62 billion) in losses, making it the hardest hit, a State Government release said.
Chief Minister M.K. Stalin renewed his appeal to the Union Government to take swift measures to safeguard industries heavily dependent on exports, particularly textiles. The state noted that while the US accounted for 20% of India’s overall export value, it represented 32% of Tamil Nadu’s exports in 2024–25, amplifying the impact of the tariff on the state’s economy.
The potential job losses across sectors such as textiles, diamonds and jewellery, machinery, and auto parts were estimated to range between 13% and 36%. The Government had earlier warned that nearly 30 lakh workers could be displaced due to the tariff hike.
Tamil Nadu contributes 28% of India’s textile exports, with Tirupur alone generating around Rs. 40,000 crore (US $ ) in foreign exchange earnings last year. The release highlighted that women workers would be disproportionately affected, as they make up 65% of Tirupur’s textile and allied industry workforce.
In his latest appeal, Stalin recalled his earlier letter to the Prime Minister and expressed gratitude for the suspension of the 11% customs duty on cotton until December 31. However, he cautioned that the measure was temporary and insufficient to offset the impact of the new US tariffs. He urged the Centre to either push for revocation of the tariffs or introduce compensatory measures.
Stalin reiterated Tamil Nadu’s willingness to work in cooperation with the union government, noting that the state’s industries had shown resilience during earlier disruptions caused by GST and the Covid-19 pandemic. At the same time, he stressed that this resilience should not be mistaken for invulnerability, adding that the Centre must act quickly to formulate a unified policy response that offers immediate relief to affected sectors.
