India: US tariff triggers 'humanitarian crisis' in Tamil Nadu, as thousands of migrant workers return home amid mass job losses
"US tariff spike triggers job crisis in Tamil Nadu’s garment hub, migrant workers exodus begins", 19 September 2025
Tiruppur... is facing a severe economic and humanitarian crisis following a sharp 50% tariff imposed by the United States on imported Indian textiles. The tax has severely dented exports, leading to an estimated 30% job loss across the industry and triggering an exodus of migrant workers, primarily from states like Odisha, Bihar, and Uttar Pradesh, who form the backbone of the region’s workforce...
...Nearly 20% of the over 2,500 export-dependent companies in Tiruppur have shut down entirely, while others have slashed production by more than half...the tariff has caused a massive pile-up of unsold inventory, leaving manufacturers unable to pay workers or sustain operations. The crisis has rippled beyond garment manufacturing, affecting dyeing units, tailoring shops, accessory suppliers, and logistics providers, effectively stalling the entire industrial ecosystem of the region...
The most visible consequence has been the departure of thousands of migrant workers...Many workers expressed despair, stating that even when alternative employment is found in sectors like construction in cities such as Chennai, the wages are insufficient.
...not only have new orders from the US dried up, but American buyers are increasingly sourcing garments from competitors like Bangladesh and Vietnam, making recovery uncertain...