Trump’s Tariffs Threaten India’s $4.1 Billion Leather Export Industry

Kolkata’s bustling leather clusters, known for their skilled craftsmanship and traditional tanneries, are staring at uncertain times. The announcement by US President Donald Trump of a 50% tariff on imports from India has sent shockwaves across the industry, which exported nearly $4.1 billion worth of leather and leather goods between April 2024 and February 2025.

The United States is India’s single largest market for leather, accounting for $870 million—or 20%—of exports. With the new tariff in place, Indian products could suddenly become more expensive and less attractive compared to those from rival exporting nations. For small manufacturers and exporters, particularly those operating on thin margins, this could mean cancelled orders and mounting losses.

Nowhere is the impact felt more deeply than in Kolkata, the heart of India’s leather trade. West Bengal contributes nearly half of the country’s total leather exports, and the numbers tell the story: 538 tanneries, 230 footwear units, and 436 leather goods units are concentrated in the state. These units, many of them MSMEs, provide livelihoods to thousands of workers—most of whom come from modest backgrounds and have few alternative employment options.

“We were already facing rising raw material costs, and now this tariff has made things worse,” said a leather exporter from Tangra, Kolkata’s leather hub. “For small exporters like us, who depend heavily on the US market, this could break our backs.”

Industry insiders say some exporters are exploring creative but complex solutions, such as shifting parts of production to Europe and marketing their products under a ‘Made in Europe’ tag to avoid the tariff barrier. However, this would mean higher operational costs and longer timelines—challenges that smaller units may not be able to withstand.

The broader fear is the ripple effect on jobs. The leather industry is one of India’s most labour-intensive sectors, employing thousands of artisans, tanners, and women workers. If exports slow down, layoffs could follow, hitting households that depend on this sector for survival.

Experts argue that India must now diversify its export markets, push for stronger trade agreements, and invest in branding and quality certification to keep its edge. But in the short term, exporters are looking to the government for relief measures—be it in the form of export incentives, credit support, or policy flexibility.

For Kolkata’s leather workers, the tariff is more than just a policy change in Washington—it is a question of livelihood and survival. And as the deadline for the new rules approaches, anxiety is rising in India’s leather capital.