What will Modi do about US tariff impact on TN textiles, jobs, DMK asks

Underscoring the impact of American tariffs on the textiles industry in Tamil Nadu's western region, the state's ruling DMK has questioned what the BJP-led Union government will do to protect the area's industries, noting the saffron party's efforts to win votes there.

Citing Indian exports to the US, including textiles, the DMK's official newspaper Murasoli stated that the share of Tamil Nadu's western belt, encompassing Coimbatore and Tiruppur, is significant in textiles and related exports.

In an editorial on 3 September, the Tamil daily cited data showing annual textiles exports to the US from Tiruppur of approximately Rs 12,000 crore. It said owing to the American tariffs, within the Tiruppur region alone, 5 lakh workers could lose their jobs and 3,000 industrial units close down.

The US tariffs have left the western region on the boil, the editorial said and asked, "What is the BJP government going to do to protect Tiruppur and Coimbatore? What is PM Modi going to do to protect the western region? The BJP is a party that always works by aiming at the western region. The BJP targets the votes of people in the western region; what it is going to do to protect the industries in the western region?"

The editorial alleged that PM Modi does everything for the sake of Adani and Ambani, adding that the question now is, what has Modi done to safeguard Tiruppur and Coimbatore textiles and allied industries?

Murasoli also referred to demands from Tiruppur hosiery trade unions calling for steps on a war footing to protect the industry and its workers.

Tiruppur exporters have reportedly begun offering discounts on US shipments, with some whose business focuses solely on the US market halting production. Chief minister M.K. Stalin had previously warned of such consequences.

The DMK daily alleged that duty drawback rates have been increased solely for Gujarat-based jewellery exporters, while Tamil Nadu-based industries have not been considered.

To protect Tiruppur industries affected by US tariffs, the editorial stated that PM Modi should immediately announce a "special fund package" to extend relief. "Will PM do it?" the daily asked.

It noted that the western region of the state had been a bastion of the AIADMK for decades and that the BJP also holds several pockets of influence there.

Days earlier, Stalin had said that 31 per cent of Tamil Nadu’s exports go to the US, making the state more vulnerable than the national average. The state government has rolled out subsidies, schemes and support, but its capacity is limited. The chief minister had urged the Union government to step in with relief measures, GST corrections, credit support and new free trade agreements.

On 28 August, Stalin stated that the 50 per cent US tariff has severely impacted Tamil Nadu's exports, particularly Tiruppur’s textile hub, causing an estimated trade impact of nearly Rs 3,000 crore and putting thousands of jobs at risk. He urged the Centre to implement immediate relief and structural reforms to safeguard industries and workers.

With PTI inputs