Maharashtra’s second-tier cities feel economic impact of US tariffs
Industries in Maharashtra’s second-tier cities are now beginning to feel the real impact of tariffs imposed by the United States. While the State government has officially acknowledged that global trade tensions and US tariffs on Indian goods have affected major industries, the strain is becoming more visible outside Mumbai and Pune.
Cities such as Solapur, Kolhapur and Sangli are facing significant hurdles, with the broader impact reflected in their local economies. Exports from key manufacturing clusters in western Maharashtra to the United States have seen sharp disruption, particularly in garments, terry towels and auto components.
Struggling Solapur
In Solapur, around 15 garment units export products to the US through merchant exporters. This flow of orders has now come to a complete halt. Terry towels form a major share of Solapur’s textile output, with about 25 per cent of production earlier exported to the US. The district’s total terry towel production is estimated at around ₹800 crore, of which nearly ₹200 crore was exported to the US Local industrialists are now concerned about finding alternative markets.
About 15,000 workers in Solapur’s textile industry could lose their jobs if the tariff stalemate continues, a figure the State government has partially acknowledged.
“The government has assured help, but no concrete steps have been taken so far. The real heat of the US tariff is being felt now, and many industries are reducing their workforce,” said a leading industrialist in Solapur.
Impact on Kolhapur
Data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) shows fluctuating export trends from Kolhapur district, known for its foundry cluster. In 2023–24, Kolhapur exported goods worth ₹157.43 crore to the US and ₹300.35 crore to other countries. In 2024–25, exports to the US stood at ₹154.76 crore, while shipments to other countries rose to ₹354.11 crore. In 2025–26, exports up to the end of June amounted to ₹41.96 crore to the US and ₹81.16 crore to other countries.
Local expert V. S. Patil said exports to the United States had given momentum to the city’s economy only in recent years, but with shipments to the US now coming to a complete halt, the repercussions are being felt across industrial estates, particularly among small ancillary units.
Sangli Workforce
Sangli district has also seen notable export activity and disruption. In 2024–25, auto components worth ₹99.96 crore were exported to the US, along with textile exports valued at ₹4.71 crore. In 2025–26, up to the end of April, auto component exports to the US stood at ₹20.5 crore, while textile exports were ₹0.24 crore.
Businessman Prashant Pawar from Sangli said small units are struggling to survive and many are unable to retain their workforce. He added that the Union government must resolve the tariff issue quickly to prevent long-term damage to the economies of smaller cities.
Government Response
While responding to members of the State Legislative Council, Marketing Minister Jaykumar Rawal said the government has appointed a committee to study the impact of US tariffs. The committee is examining challenges faced by industries in exporting to other countries, options to boost exports, alternative overseas markets,and both short- and long-term solutions to mitigate the impact of US tariffs. The government, he said, will act on the committee’s recommendations to support affected industries.
Published on January 6, 2026
