Indian leather exporters face bleak future after additional US tariffs

EXPORTERS in Kanpur, India's leather hub, are worried after clients from the U.S. cancelled orders in response to additional tariffs imposed by U.S. President Donald Trump.

AI Brief

US raises tariffs on Indian goods like leather to 50% due to trade disputes and India's Russian oil purchases.
Nearly 55% of India's US$87 billion exports to the US could be affected, with competitors gaining advantage.
Only shipments already in transit are exempt; hopes for a delay during the 21-day gap were dashed.

Indian exporters are bracing for a sharp decline in U.S. orders after trade talks collapsed and Washington confirmed steep new tariffs on the South Asian nation's goods, including leather, take effect from Wednesday (August 27), escalating tension between the strategic partners.

An additional 25% duty announced by Trump, confirmed in a notice by the Homeland Security Department, takes total tariffs to as much as 50%, among Washington's highest, in retaliation for New Delhi's increased buying of Russian oil.

Exporters were hoping for a respite during the 21-day gap from the first imposition of tariffs on August 1.

The new duties will apply from 12:01 a.m. EDT on Wednesday (9:31 a.m. IST), the notice showed. Exceptions are shipments in transit, humanitarian aid, and items under reciprocal trade programmes.

Exporter groups estimate hikes could affect nearly 55% of India's merchandise exports worth $87 billion to the United States, while benefiting competitors such as Bangladesh, China and Vietnam.