C Shivakumar
As the United States slaps fresh tariffs on Indian goods, leather exporters in Tamil Nadu — a key hub of the country’s leather industry — are bracing for short-term disruption, even as they eye long-term gains from shifting global trade flows.
Earlier this month, Washington announced a 26 per cent tariff on a range of Indian exports, including footwear and leather goods. The move, part of a broader trade recalibration under President Donald Trump’s administration, places India in a comparatively better position than East Asian competitors such as Vietnam and Cambodia, which now face steeper duties of 46 per cent and 49 per cent respectively.
While the hike has rattled Indian exporters, some in the sector see an opening.
“With the new tariffs in place, India becomes a more attractive sourcing destination,” said Israr Ahmed, director of Farida Prime Tannery and vice-president of the Federation of Indian Export Organisations (FIEO). “Major brands will start looking at India more seriously, and we anticipate a rise in order books.”
Tamil Nadu accounts for 38 per cent of India’s footwear and leather goods production. The state, home to several export-driven clusters, is likely to feel the impact of any shift in global sourcing strategies. India exported $4.01 billion worth of leather and leather products in the last fiscal year, with the United States accounting for nearly $873 million — over a fifth of total exports.
Despite optimism from some quarters, industry players warn that the immediate future could prove challenging.
“About 20 per cent of our exports go to the US,” said Abdul Wahab, managing director of K H Shoes. “It’s our single largest market, and a 26 per cent tariff is a serious blow. In the next four to five months, we expect disruption — cancellations and reduced orders.”
Wahab said his company, like many others, is scrambling to assess the full implications. “We’re moving from meeting to meeting, trying to understand the tariff lines. Right now, it’s too early to comment with certainty — but we already know that customers won’t absorb the full cost. They expect us to share the burden.”
He added that the impact will be felt almost immediately. “The tariffs come into effect from April 5. That covers our peak production season — the months leading up to the major fall and holiday sales in the US. These months are critical. Any shift in cost structures now directly hits manufacturers and brands.”
Beyond the short-term turbulence, exporters believe India’s leather sector could stand to benefit from a long-term realignment of supply chains away from traditional powerhouses in Southeast Asia.
“In the longer term, there is definitely an opportunity for India,” Wahab said. “We are one of the few competing manufacturing countries with scale. But before we can talk about gains, we need to get through this very real and immediate challenge.”
Industry bodies have begun lobbying the Indian government for relief and support. “This is a labour-intensive sector,” Wahab said. “We’re engaging with the Commerce and Finance Ministries to help us navigate this critical juncture.”
As the global trade map is redrawn, India’s leather exporters are hoping that short-term pain will lead to long-term repositioning — but for now, the focus is on survival.
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