Indian leather exporters are staring at heavy losses as steep US tariffs shake their biggest overseas market. Shipments to the US are falling fast and buyers are moving orders to rival Asian countries according to The Hindu Business Line.
Indian Exporters say tariffs of up to 50% imposed by the Donald Trump administration have made Indian products too expensive.
To survive many companies are offering discounts ranging from 10% to 40%. Even then US buyers are shifting to Vietnam, Cambodia, Indonesia and the Philippines.
In Bantala leather complex exports to the US are already down by 25%. This cluster is one of Asia’s largest leather hubs.
In Ambur, Tamil Nadu exporters with nearly 60% dependence on the US are facing deep uncertainty. Units that rely only on the US market are preparing for temporary worker layoffs.
September 2025 marked the first full month of the 50% tariffs which came into force on August 27, 2025. The impact on India US leather trade has been sharp and immediate.
India produces about 13% of the world’s leather. It is the second largest exporter of leather garments globally and the fifth largest exporter of leather goods and accessories.
Around 100 of the 700 leather goods units in Bantala export to the US. Their turnover has dropped by about 25%. Growth of 5-7% seen earlier has stalled and several units are running into losses.
“The US contributes over 20% of our exports. With 50% tariffs it has become unviable. American buyers cannot sell our products at higher prices even after discounts and they are moving to other countries.”
– Ramesh Juneja, Vice Chairman, Council for Leather Exports
Industry leaders warn that factories focused on the US market are close to shutting down. Many are sharing the tariff burden with buyers to retain relationships. This means burning cash in the hope of future policy relief.
In Ambur exporters with more than 80% exposure to the US are likely to start layoffs. More than 80% of the workforce in these units are women. Workers in Chennai and nearby clusters are already anxious as exports dip by 5-7%.
Exporters are now racing to find new buyers in Europe, Japan and other regions. The industry hopes this shift can soften the blow but the damage from US tariffs is already visible on the ground.
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