Indian exporters of leather and textiles are moving fast to ship out pending orders after the United States paused new tariffs for 90 days. While they don’t expect a sudden jump in fresh orders, this short break gives them a window to reduce stock and meet deadlines without paying higher taxes.
Last week, US President Donald Trump pushed back new tariffs except for Chinese goods.
In 2024, the US imported $107.72 billion in textiles, with $80 billion coming from apparel. China led the supply chain with 21%, followed by Vietnam at 19%, Bangladesh at 9%, India at 6%, and Sri Lanka at 3%
Under the new tariff structure, India’s top competitors will face higher taxes Bangladesh at 37%, Sri Lanka at 44%, and Vietnam at 46%. Meanwhile, the US is in talks with over 75 countries to adjust these rates.
The Indian leather industry also welcomed the pause. Exporters feared cancellations due to the new tariffs, but many are now working hard to ship goods within the 90-day window. The industry usually runs on a 90 to 120-day cycle.
“This gives us just enough time to complete the current batch of orders,”
Israr Ahmed, Executive Director, Farida Group
Ahmed noted that while India’s global leather exports are still small, US buyers are starting to look beyond China and Vietnam to reduce risk.
Between April 2024 and February 2025, India exported $4.1 billion in leather and leather goods. Of that, $870 million went to the US. If high tariffs on competitors continue, Israr Ahmed believes India’s share will slowly grow.
Source – Apparel Resources
