CHENNAI: Chief minister M K Stalin has urged Prime Minister Narendra Modi to solve the crisis faced by TN exporters due to the recent tariff hike imposed by the US. Currently, the US has imposed 50% tariff hike on Indian exports.Stalin wrote to Modi saying that the confirmed orders were cancelled and new orders have stopped.
“In Tiruppur exporters have reported a staggering wipe out of Rs 15,000 crores in confirmed orders, coupled with enforced production cuts of up to 30% across units. New orders are also drying up at an alarming rate. This has translated into a combined daily loss of Rs 60 crores in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur Districts, pushing many Small and Medium enterprises to the brink of collapse. A similar dismal scenario is witnessed in our footwear clusters in Vellore, Ranipet and Tirupatthur distircts,” Stalin said.Due to the tariff hike, Stalin said the manufacturers are forced to cut profit margins and offer “deep discounts” to retain their clients, which erodes their competitiveness and viability. “Lakhs of jobs hang in the balance, with the sectors already witnessing layoffs and wage deferrals that threaten the stability of entire communities,” Stalin said.The chief minister said due to the tariff disadvantage international buyers diverting orders to competitors like Vietnam, Bangladesh and Cambodia, which have a current tariff advantage over us. “Once these markets are lost, regaining them would be an uphill battle, as entrenched supply chains rarely revert back. This has ominous long-term implications for the future employment prospects of our youth, especially women,” Stalin said.Stalin insisted Modi to solve the impasse through bilateral agreement at the earliest. “A swift decision would not only revive the fortunes of our exporters but also reinforce India’s position as a reliable global manufacturing hub,” Stalin said.
