US Tariff Impact: Trump's 50% Levy Shoots Down Close To 100 Tanneries In Tamil Nadu, Says Report

India's leather and non leather footwear exports amounted to $4.4 billion between 2024-2025, out of which, $1 billion worth of exports were directed to the United States, but the sub-continent seems to be losing its domain to other countries such as Vietnam, China, Indonesia, Bangladesh, and Mexico, according to a TOI report.

This sudden turning of tides can be attributed to none other than the 50% tariffs slapped on India by the Trump administration. The impact of these punitive measures has been felt deeply by the tanneries in the Ambur region of Tamil Nadu's Periyavarigam village, where a minimum of 50 factories have been shut.

Half of Tamil Nadu's leather exports are directed towards the US. Besides Tamil Nadu, Agra and Kanpur were the epicentre for manufacturing of leather goods, making up 70% of Indian exports to Washington. Exported goods mainly consisted of belts, bags, shoes and wallets.

Senthil Murugan, a technical expert for the leather goods market and a supplier of raw materials informed TOI that factories supply leather goods to Europe, which imposes 20% tariffs, are still functional, but most of those exporting to the US have shut shop, with shoemakers shifting to alternate materials. He added that some of the tanneries are shifting their operations entirely to other locations where tariffs are lower, like Vietnam and Bangladesh.

Quest For A Solution

US buyers are urging New Delhi to either offer big discounts on leather goods or cut down on orders. While some factories have begun venturing into other markets, such as the United Kingdom; for many, no solutions seems to be on the horizon.

Discussions with Finance Minister Nirmala Sitharaman has borne little fruit for the Council for Leather Exports and the Federation of Indian Export Organisations or FIEO.

The FIEO has requested an interest equalisation scheme, stronger market access initiatives, and temporary aid for exports to the US to prevent job losses, citing punitive tariffs and statutory contributions.