Chennai: Tamil Nadu Chief Minister M.K. Stalin on Thursday expressed serious concern over the United States’ roll out of its decision to hike tariffs on textile imports to 50%. He said the move has significantly impacted the State’s exports, especially from Tiruppur district, a leading textile hub.
Taking to social media, Stalin said, “The #USTariff hike to 50% has hit Tamil Nadu’s exports hard, especially #Tiruppur’s textile hub, causing a trade impact of nearly Rs. 3,000 crore and putting thousands of jobs at risk. I reiterate my demands to the Union Government for immediate relief and structural reforms to safeguard our industries and workers.”
The Chief Minister also shared a news report citing the ₹3,000 crore trade impact on Tamil Nadu’s textile sector due to the tariff increase, underscoring the severity of the situation.
Earlier this month, Stalin had written to Prime Minister Narendra Modi, warning of the detrimental effects of the U.S. tariffs on Tamil Nadu’s export-oriented sectors, particularly textiles. In his letter, he highlighted the growing threat of layoffs and urged the Union government to act swiftly by providing a special financial relief package for exporters.
Besides, he pointed out that inputs gathered from industry consultations emphasised two immediate areas needing attention: the correction of the inverted duty structure under the GST for the man-made fiber value chain—by bringing the entire chain under a uniform 5% GST slab—and the exemption of import duty on all varieties of cotton.
Stalin had also stressed the importance of expanding financial support to the sector, proposing an extension of 30% collateral-free loans under the Emergency Credit Line Guarantee Scheme (ECLGS), with a 5% interest subvention and a two-year moratorium on principal repayment. He also called for an enhancement of Remission of Duties and Taxes on Exported Products (RoDTEP) benefits to 5%, and the extension of both pre- and post-shipment credit facilities to all textile exports, including yarn.
