Indian leather exporters hit by US tariffs, layoffs ahead
Indian leather exporters are bracing for tough times as new US tariffs slash expected revenue by 10-12% this fiscal year.
With earnings set to drop from ₹56,000 crore to ₹50,000 crore in FY26, many factories—especially those making finished leather products—are planning temporary layoffs.
Why the sudden trouble?
The US buys about 22% of India's leather exports (worth over $1 billion), and these new 50% tariffs on finished goods have made selling there much harder.
The industry relies heavily on exports for its income, so when orders drop, jobs are at risk.
Real impact on workers and regions
Places like Bantala have seen exports fall by 25%, while Ambur factories (where most workers are women) are preparing for layoffs too.
Even big names like Edcons Exports say 15% of their total sales used to go to the US, but they have not received new orders for early 2026.
Smaller tanneries are struggling most as orders dry up.
Did you know?
Despite all this, before the tariffs kicked in, the US was actually buying a bigger share of India's leather each year—proof of how quickly things can change in global trade.