TN exporters face US tariff challenges

CHENNAI: Chief Minister M.K. Stalin has asked Prime Minister Narendra Modi for help after the U.S. increased tariffs on Indian exports by 50%. This has caused major problems for exporters in Tamil Nadu, especially in places like Tiruppur, Coimbatore, Erode, and Karur.

Exporters reported that Rs 15,000 crore worth of confirmed orders were canceled, and new orders have dropped sharply. Factories are operating at only 70% capacity, leading to daily losses of Rs 60 crore for exporters in these areas. Many small and medium businesses are struggling to survive.

Stalin explained that exporters are forced to reduce prices or offer deep discounts to keep clients, which makes it harder for them to compete with other countries like Vietnam, Bangladesh, and Cambodia. These countries currently have lower tariffs, making them more attractive to international buyers.

The situation is dire, with lakhs of jobs at risk. Layoffs and wage cuts are already happening, threatening the stability of entire communities. Once these markets are lost, it will be difficult to win them back, especially for Tamil Nadu’s youth and women workers.

Stalin urged Modi to solve this issue quickly through a bilateral agreement. He said that swift action would not only help exporters but also show that India is a reliable global manufacturing hub.