Tamil Nadu Chief Minister MK Stalin on Thursday delivered a sharp warning to the Centre, demanding urgent action as the US decision to hike tariffs on Indian goods to 50% threatens to devastate the state’s textile-driven economy.

“The US Tariff 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,” Stalin said in a post on X.

Stalin had earlier written to Prime Minister Narendra Modi on August 16, warning of mass layoffs in export-oriented industries and pressing for a special financial relief package to shield exporters from the blow.

Industry leaders echoed Stalin’s alarm. K.M. Subramanian, President of the Tiruppur Exporters’ Association, told ANI that the crisis could cripple India’s largest knitwear cluster.

“Tiruppur 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 said.

He warned that 30% of Tiruppur’s exports — worth nearly Rs. 12,000 crore — go to the US, and those shipments are now facing cancellations. “Every day, we receive news that buyers are asking for discounts or requesting cancellations,” he revealed.

Comparing India’s plight with competitors, Subramanian noted: “While 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. Low-value garment exports worth Rs. 2,000 to Rs. 2,500 crore annually are at immediate risk.”