One of India’s richest states that’s heavily reliant on exports said high US tariffs are causing “irreparable damage” to businesses in the region and called on Prime Minister Narendra Modi to urgently seek a trade deal with Washington.

M. K. Stalin, the chief minister of Tamil Nadu, said export orders have dried up in some districts, resulting in a daily loss of 600 million rupees ($6.7 million) in revenue. In Tiruppur district- also known as the knitwear capital of the nation- there’s been “a staggering wipe out” of 150 billion rupees in confirmed orders, forcing production cuts of up to 30%, Stalin said in a letter to Modi on Thursday.

US President Donald Trump slapped tariffs of 50% on Indian goods in August, one of the highest rates in the world, slashing exports to India’s biggest market and threatening Modi’s manufacturing ambitions. Despite months of negotiations and New Delhi officials expressing optimism of a deal soon, both sides remain locked in talks without any clear sign whether the tariffs will be lowered. 

Stalin, who is part of the opposition and often critical of the Modi government, described the situation in Tamil Nadu as an “escalating crisis” in his letter to the prime minister. The resulting economic setback has pushed many small and medium enterprises to the “brink of collapse,” he added.

The US is India’s biggest export market and the high tariffs have impacted labour-intensive sectors such as textiles, gems and jewellery, and leather and footwear, forcing the federal government to step in with relief measures for exporters.

“The current trade stalemate is not merely an economic setback but a looming humanitarian challenge due to the irreparable damage caused by the tariffs,” Stalin said in his letter. 

Ruled by the Dravida Munnetra Kazhagam party, Tamil Nadu is one of India’s largest exporting hubs for textiles, electronics, leather and footwear, and automobiles. As the country’s most industrialised state, it competes with Vietnam and Mexico and is home to Apple Inc. factories. Mobile phone exports are currently exempted from Trump’s tariffs.

Tamil Nadu contributes 28% to the nation’s textile exports and employs around 7.5 million people in the sector, Stalin said. The leather and footwear industry in the state contributes 40% to the nation’s sectoral exports and employs over one million workers, he said. 

“In this context, I implore you to prioritise resolution of this tariff issue through bilateral agreement at the earliest possible juncture,” the letter said. 

Chandrababu Naidu, chief minister of Andhra Pradesh state who is Modi’s coalition partner in the government, has also raised concerns about the damage the high US tariffs is having on the state’s shrimp exports.