India News | US Tariff Hike to 50% Has Hit Tamil Nadu's Exports Hard: Stalin Urges Centre for Immediate Relief

Tiruppur (Tamil Nadu) [India], August 28 (ANI): Tamil Nadu Chief Minister MK Stalin on Thursday reiterated his demands to the Centre for immediate relief and structural reforms to safeguard industries and workers as US tariff hike to 50% has hit Tamil Nadu's exports hard, especially Tiruppur's textile hub.

"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," Stalin said in a post on X.

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"I reiterate my demands to the Union Government for immediate relief and structural reforms to safeguard our industries and workers," he said.

On August 16, Stalin wrote to Prime Minister Narendra Modi, highlighting the considerable impact of the United States' tariffs on Tamil Nadu, including the threat of layoffs in export-oriented sectors, and urged the Centre to take immediate measures, including providing a special financial relief package to support exporters.

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Meanwhile, K.M. Subramanian, president of the Tiruppur Exporters' Association, told ANI that the knitwear exporters in Tirupur who rely entirely on the US for their exports--constituting about 10 percent of the total--will be the most affected by the tariff hike.

"Tirupur is one of India's main knitwear export hubs. This cluster exported goods worth Rs. 45,000 crore last financial year. We provide job opportunities for one million people, 65 percent of whom are women. The US's 50 percent tariff was a shock to knitwear exporters," Subramanian told ANI.

He pointed out that while competitor countries like Vietnam and Bangladesh face a 25 percent tariff, India faces a 50 percent tariff in the US.

"This will affect our export business to America. Currently, 30 percent of our exports, worth approximately Rs. 12,000 crore, go to the US. Every day, we receive news that buyers are asking for discounts or requesting cancellations," he said.

He added that low-value garment exports to the US, which represent an annual business worth Rs. 2,000 to Rs. 2,500 crore, are at immediate risk.

The US first imposed 25% tariffs on India in early August. President Donald Trump then announced an additional 25% on India effective August 27, for the country's continued purchases of Russian oil. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)