India’s leather exporters are bracing for severe losses after the United States imposed steep tariffs on Indian goods, dealing a major blow to an industry that relies on overseas markets for nearly 80% of its business.
Exporters warn that the new trade barrier will lead to mass order cancellations, financial strain, and a diversion of business to competitors like Bangladesh, Vietnam, and Pakistan.
Umakant Dubey, a leading leather exporter, said the move could see India lose substantial market share. “It will cause a huge loss to the leather industry. We will not be able to export goods and products. Only 20% of leather goods are consumed domestically; the rest is for export. Now, the orders will go to Bangladesh, Vietnam, and Pakistan instead of India,” he said.
Another exporter, Mohd Shamim Azad, echoed concerns, warning of spiralling costs and broken contracts. “Businessmen with advance orders will face losses. Buyers will cancel orders being prepared here because costs will now be higher. This is a big loss not only for the leather industry but for the whole nation,” he said.
The setback follows the White House’s Executive Order on Wednesday, which imposed an additional 25 percentage points in tariffs on Indian imports, pushing the total rate to 50%. The US cited national security and foreign policy concerns, particularly India’s continued imports of Russian oil, which it described as posing an “unusual and extraordinary threat” to the United States.
US President Donald Trump has made it clear there will be no trade negotiations until the tariff dispute is resolved. Responding to ANI at the Oval Office on whether talks could resume after the new tariff hike, he said, “No, not until we get it resolved.”
Industry experts fear that without swift diplomatic intervention, India’s leather sector—already operating on thin margins—could face long-term damage and a major loss of global competitiveness.