The Indian leather and footwear industry woke up to some good news today, on 3rd February 2026. Exports to the US will now face a lower tariff of just 18%.
The tariff cut was announced overnight by the White House. The US reduced duties on Indian goods from a steep 50% to 18%. This comes after nearly 5 months of pressure on Indian exporters who were struggling since the higher tariff kicked in on August 27, 2025.
The decision follows a new trade understanding between India and the US. Under the deal India agreed to stop buying Russian oil and ease several trade barriers. In return the US agreed to sharply reduce tariffs on Indian goods.
At 18% the duty on Indian products is now slightly lower than the 20% applied to products from our neighbouring countries, such as Bangladesh and Sri Lanka.
“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country”
–Donald J. Trump
President of the United States
Trump said both countries agreed to move fast on trade and energy cooperation. He added that India committed to buying more American energy, technology, agriculture and other products worth over $500 billion.
Prime Minister Modi said the agreement strengthens ties between the world’s two largest democracies and opens doors for deeper cooperation.
For Indian leather and footwear exporters this decision could not have come at a better time. Lower tariffs mean better margins, stronger orders and renewed confidence after months of uncertainty. This deal signals a fresh start for India-US trade and gives the industry room to breathe again.
