US Tariffs Threaten Indian Leather Exporters’ Global Foothold

Indian leather exporters are grappling with severe challenges following the United States' imposition of steep tariffs on Indian goods. The move hits an industry largely reliant on exports for around 80% of its revenue, prompting warnings from exporters about substantial financial losses, canceled orders, and potential business diversions to competitors like Bangladesh, Vietnam, and Pakistan.

Umakant Dubey, a prominent leather exporter, highlighted the industry's dependency on global markets, emphasizing the risk of losing key orders to rival countries. 'It will cause a huge loss to the leather industry. We will not be able to export goods and products. There is only 20% consumption of leather products in India; the rest of the business is completely international. Now, the orders will be given to Bangladesh, Vietnam, and Pakistan instead of India,' he stated.

Echoing the sentiment, Mohd Shamim Azad, another exporter, expressed concerns over the increased costs due to the new tariffs, leading to order cancellations and broader economic repercussions. 'It will have a huge negative impact on the leather industry in the nation...The businessmen who have got advance orders will be at a loss. Now, the parties (customers) will not take their orders that are being prepared here, as the cost will be high now...It is a big loss for not only the leather industry but also for the whole nation,' he remarked.

The tariffs were enforced through an Executive Order from the White House on Wednesday, which added an additional 25 percentage points on Indian goods, hiking the total tariff rate to 50%. The US administration cited national security and foreign policy concerns, pointing specifically to India's ongoing imports of Russian oil. These imports, according to the order, pose an 'unusual and extraordinary threat' to the United States, warranting emergency economic measures.

Previously, US President Donald Trump had declared that trade talks with India would not resume until the tariff dispute was resolved, a stance that's been reinforced with the recent tariff hike. Asked by ANI at the Oval Office whether discussions could recommence in light of the new 50% tariff, he replied, 'No, not until we get it resolved.'

(With inputs from agencies.)