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U.S. tariffs on Indian goods caused a 10-12% revenue drop in India’s leather sector in 2025.
India’s leather industry faces a 10-12% revenue drop in fiscal 2025 due to a 50% U.S. tariff on Indian goods, effective August 27, 2025, combining a 25% reciprocal duty and a 25% penalty for importing Russian oil.
The tariff has severely impacted exports of finished leather products like shoes and accessories, with U.S. export volumes expected to fall 13-14%.
Many small tanneries have closed, and orders have been canceled or delayed.
Despite a 6% GST reduction and favorable domestic conditions, export headwinds are expected to reduce profitability by 150-200 basis points.
Exporters are exploring diversification to markets like the UK and shifting production to lower-tariff countries, but these efforts are still in early stages.
Los aranceles estadounidenses a los productos indios causaron una caída del 10-12% en los ingresos del sector de cuero de la India en 2025.