Tamil Nadu could face an export loss of ₹34,642 crore (US $3.93 billion) in 2025–26 due to the 50% tariff imposed by the United States across multiple sectors, according to estimates by Guidance Tamil Nadu, the state’s investment promotion agency. The textile sector is expected to be the hardest hit, with projected losses of ₹14,280 crore (US $1.62 billion).
Chief Minister M.K. Stalin renewed his appeal to the Union Government to implement swift measures to protect industries heavily reliant on exports, particularly textiles. He noted that while the US accounted for 20% of India’s overall exports, it represented 32% of Tamil Nadu’s exports in 2024–25, amplifying the impact on the state’s economy.
The potential job losses across sectors including textiles, diamonds and jewellery, machinery, and auto parts are estimated to range between 13% and 36%. Earlier government warnings indicated that nearly 30 lakh workers could be affected. Women workers are expected to bear the brunt, as they comprise 65% of Tirupur’s textile and allied workforce.
Stalin welcomed the Centre’s temporary suspension of the 11% customs duty on cotton until December 31 but emphasized that this was insufficient to offset the impact of the new US tariffs. He urged the Union Government to either push for revocation of the tariffs or introduce compensatory measures.
Highlighting Tamil Nadu’s resilience during previous disruptions caused by GST reforms and the COVID-19 pandemic, Stalin stressed that such resilience should not be mistaken for invulnerability. He called for a unified policy response to provide immediate relief to affected industries.