US Tariffs Impact on TamilNadu: Impact of American tariffs; 3 million jobs at risk in Tamil Nadu

• Tamil Nadu government worried about Trump’s additional tariffs
• Fear of closure of many medium and small factories
• Warning that 30 lakh jobs in the state are at risk

US Tariffs Impact on Tamil Nadu: Tamil Nadu (Tamilnadu) has given a big warning to the central government about US tariffs. It said that if the current situation continues, approximately 3 million jobs in the state are at risk. Many medium and small scale factories will close down. Union Finance Minister Nirmala Sitharaman ( Nirmala Sitharaman) State Finance Minister Thangam Denarasu raised this issue in a meeting chaired by Tamil Nadu also alleged delay in disbursement of funds for projects and decline in revenue after implementation of GST. These issues were raised during the annual pre-budget consultations with the states of India.

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Denarasu said that some accounting issues between the central government and the states have not been resolved. This is affecting the economic indicators of Tamil Nadu. This is limiting their borrowing capacity. Thangam Denarasu said that the Chennai Metro Rail Phase 2 project was approved in October 2024. However, even after a year and a half, the state has not reaped its full benefits. Tamil Nadu has already paid approximately Rs 9500 crore as central government’s share in this project. This accounting problem is affecting the state’s debt-to-GSDP (Gross State Domestic Product) ratio and reducing its borrowing capacity.

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Apart from infrastructure, the minister also highlighted Tamil Nadu’s vulnerability to global trade disruptions. He warned that the recent US tariffs (Trump tariffs) growth has had a significant impact on the state’s export-driven economy. He said, 31% of Tamil Nadu’s commodity exports go to the US market. Hence, these measures affect the state more severely than others. This has increased the threat to production and employment. Especially the textile sector is under pressure. The minister said that Tamil Nadu accounts for 28% of India’s textile exports and provides employment to more than 7.5 million workers.