Home / Business and Economy / States Seek Urgent Textile Sector Relief Ahead of US Tariffs
States Seek Urgent Textile Sector Relief Ahead of US Tariffs
24 Aug
Summary
- Tamil Nadu fears massive job losses from 25% US tariff
- States reworking export policies to find new markets
- Requests for export incentives, cotton import duty lift
As of August 24, 2025, Indian states are scrambling to secure government support for their textile sectors ahead of a looming 25% US tariff set to take effect on August 27. The state of Tamil Nadu, which exported 31% of its total $52.1 billion shipments to the US in the last fiscal year, is particularly concerned about the impact, fearing massive job losses once the additional tariff is implemented.
Tamil Nadu is not alone in its plea for assistance. Across the country, from Uttar Pradesh to Telangana, Kerala to Rajasthan, and Gujarat to Tamil Nadu, state governments are reworking their export promotion policies and exploring ways to quickly find newer markets to offset the potential losses. The states have requested the central government to provide export incentives, lift import duties on cotton, and grant GST exemptions to help the textile sector weather the storm.
The textile industry is a crucial employer in many of these states, and the prospect of a significant US tariff hike has sent shockwaves through local economies. State governments are now working urgently to mitigate the impact and protect jobs in this vital sector.
