Govt Urges States like Maharashtra, Tamil Nadu to Step Up Assistance to Exporters Hit by Trump’s 50% Tariffs

The Ministry of Commerce and Industry is scheduled to reach out to the export-oriented states like Gujarat, Maharashtra and Tamil Nadu, requesting them to support the labour-intensive sectors, which has been hit by Trump government’s 50% tariffs.

Exporters have warned that the US tariff hike sets a challenge, impacting nearly 55% of India’s exports to the US. Among the ones who are expected to be hit the worst, are apparel and leather exporters. This comes especially at a time when orders for the festive season are typically placed.

Speaking to Business Standard, a government official who did not wish to be identified said, “While the Centre is already exploring options to support exporters, state governments of Gujarat, Maharashtra, and Tamil Nadu will also be encouraged to consider measures of their own, as the employment and economy in such export-oriented states will be affected. We will soon be writing to these states in this regard.”

India’s Top Exporting States

Currently, the top five exporting states — Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh — together account for around three-fourths of India’s total merchandise exports of $437 billion in FY25.

In FY25, Gujarat’s exports were led by petroleum products ($43.9 billion), followed by engineering goods ($16.6 billion), gems and jewellery ($8.3 billion), and textile ($5.6 billion). Maharashtra’s shipments were dominated by engineering goods ($22.5 billion), along with gems and jewellery ($13.7 billion), chemicals ($8.1 billion), agricultural products ($5.4 billion), and textile ($3.8 billion). Tamil Nadu’s top export items included engineering goods ($18.1 billion), electronic goods ($14.6 billion), textile ($8 billion), and leather and leather products ($1.6 billion). 

Govt’s Three-pronged Strategy to Battle Tariffs

The Centre is working on a three-pronged strategy to help exporters steer through the impact. One of the plan of the government, involves launching a sector-specific support scheme under the proposed ₹2,250 crore Export Promotion Mission. Apart from that, some other measures include identifying alternative overseas markets for surplus products and redirecting them to meet domestic demand. 

Meanwhile, the Union Ministry of Textiles reopened the production-linked incentive scheme for the textiles sector on Friday, thereby inviting fresh applications in response to industry requests.

Addressing the inauguration of various metro projects in Bengaluru on Sunday, Prime Minister Narendra Modi said both the central and state governments must work together for the welfare of the people. “We have to take steps together for the betterment of our countrymen,” he said.