50% tariff imposed by the United States on Indian leather and footwear products has sent shockwaves across the industry. Experts fear this move could impact as much as 90% of the trade, according to R K Jalan, Chairman of the Council for Leather Exports (CLE).
Speaking at a CLE meeting in Kanpur a few days back according to Daily News, Jalan said exporters were already facing pressure from international buyers asking for price cuts of 20-25%.
He explained that shifting to new markets is not simple. Indian exporters have had a strong foothold in the US for years, which makes the tariff especially difficult.
“Tapping into new markets is never a quick process. Locating alternative markets on short notice is tough because shoe sizes, design preferences and consumer trends vary widely between regions. We hope this tariff is temporary and that the government will extend a support package of 20-25%”
R K Jalan, National Chairman, Council for Leather Exports
The CLE has decided to send trade delegations to Russia and Africa to find new opportunities. Jalan highlighted the hurdles, noting differences in consumer trends across countries.
Current Regional Chairman Asad Iraqi added that India’s free trade agreement with the UK would also be used to boost trade. Commerce Minister Piyush Goyal is expected to lead the delegation to Russia while buyer-seller meets are planned in African countries.
