India’s leather exporters face a severe blow as U.S. President Donald Trump imposes steep tariff hikes on Indian footwear, jeopardising recent export gains in the American market.
India’s leather exports have seen strong growth in recent years, rising from US$3.68 billion in 2020-21 to US$4.83 billion in 2024-25. Shipments to the U.S. grew even faster – up 62% from US$645 million to US$1.05 billion over the same period.
In the Agra region specifically, the U.S. represented a major new opportunity. But the sudden increase in import duties on leather footwear – from 5-8% to 25%, with a further 25% rise threatened by August 27 – is now derailing those ambitions.
In factories across the city, where more than 100,000 people work in over 5,500 leather footwear units, production for the autumn and winter season is in full swing and manufacturers now face uncertainty as buyers cancel or postpone orders.
Many companies have already invested heavily in expanding capacity to meet U.S. demand. Puran Dawar, Chairman of the Development Council for Footwear and Leather Industry, said his own group had set up a new, larger facility to tap into the market. He noted: “That’s definitely out of the question now.”
Manufacturers warn that the higher duties will make Indian leather footwear uncompetitive in the price-sensitive U.S. market. Nazir Ahmed of Park Exports said: “If orders aren’t placed, factories will be without work – and so will workers. Unemployment could run into millions if this continues.”
The impact is not limited to Agra. In hubs like Kanpur, tanneries supplying U.S.-linked exporters are already seeing cancellations. Rajendra Kumar Jalan, Chairman of the Council for Leather Exports, said the new rate leaves India “completely out of the picture” compared with rivals.
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