30 lakh jobs at risk: Trump tariffs choke Tamil Nadu’s US bound textile exports

Tamil Nadu’s textile exporters have sounded the alarm after US President Donald Trump imposed steep tariffs on Indian goods, endangering 20,000 factories and nearly 30 lakh jobs in the state’s knitwear hub of Tiruppur.

Kumar Duraisamy, Joint Secretary of the Tiruppur Exporters Association, said the cluster contributes 68 percent of India’s knitwear exports through 2,500 exporters and 20,000 standalone units. 

“Last year we made a turnover of Rs 44,744 crore, which is a phenomenal growth amidst the COVID lockdown, the slowing down of the Western economy and the Russia-Ukraine crisis. After this, we got 20 percent growth,” Duraisamy said. He added that Tiruppur caters primarily to the United States, United Kingdom, European nations, Australia, the UAE, Saudi Arabia, and African countries, “of which American business is 40 percent and Europe makes another 40 percent, the UK 10 percent and the rest is 10 percent.” 

Exporters dependent on U.S. buyers face the sharpest blow, particularly those manufacturing core products such as undergarments, baby suits, and sleepwear. Duraisamy said razor-thin margins made it impossible to absorb the tariffs.

“Buyers have instructed the factories to ship out whatever goods which are ready by 27th August while also asking to absorb a certain portion of the tariff which many have agreed to. But when the second 25 percent is announced for India, it is a huge blow as no one can absorb such a blow. This has put a hold on orders with buyer instructing no more shipment of orders after 27th August,” he said.

Tamil Nadu Chief Minister MK Stalin has written to Prime Minister Narendra Modi urging immediate intervention. He stressed that the state’s dependency on the U.S. market made it particularly vulnerable.

“In the last financial year, while 20% of India’s total goods exports of $433.6 billion were to the United States, 31% of Tamil Nadu’s $52.1 billion goods exports went there. This higher dependency on the US market clearly implies that tariff impact on Tamil Nadu will be disproportionately greater than for most other Indian states,” Stalin said.

The chief minister also highlighted the wider impact on India’s textile economy. “Especially, our textile sector employs nearly 75 lakh people and with a 25 percent tariff and a proposed 50 percent tariff, an estimated 30 lakh jobs are at immediate risk. To mitigate this crisis, it is essential to address structural issues that have long hindered our export competitiveness,” Stalin warned.