‘Exporters can recover business they lost’: Trump’s tariff cut brings cheer to UP’s leather industry

Together, these tanneries and leather manufacturing units provide employment to nearly 10 lakh people. A large number of workers in leather units are women, who form the backbone of this sector.

According to Iqbal, the industry had suffered a major setback after the United States announced a 50% tariff last August as exporters were unable to absorb such a steep duty, forcing many units to sharply scale down or suspend operations.

“No one could afford a 50% tariff… as a result, work almost came to a standstill. The US is one of our biggest markets because of its strong purchasing power, but that market was nearly closed to us,” he said.

Owners of leather and tannery units The Indian Express spoke to echoed Iqbal, saying shipments to the US had remained almost completely stalled since August, severely impacting production and revenue and pushing many businesses into serious financial distress. They said leather exports from Kanpur and Unnao together were worth around Rs 8,000 crore annually.

A tannery owner also said countries such as Vietnam and Bangladesh had captured a large share of the market, leading to a sharp decline in India’s presence.

The Indian Express had reported last year that India’s leather exports across the world rose from $3,681 million in 2020-21 to $4,828 million in 2024-25 — a 31% rise. In the same period, exports to the US rose from $645 million to $1,045 million — a 62% jump.

Asad Iraqi, Regional Chairman of the Council for Leather Exports, said with the reduction in tariff, exporters are now in a position to revive their business and resume discussions with their US buyers. “We can once again approach our customers in the US and work together to revive business by bearing some portion of the tariff,” he said.

Iraqi added that the impact of the high US tariff was not just limited to large tanneries. Small and medium-scale units were also badly affected and had to bear heavy losses, as many of them struggled to survive during the downturn.

Naiyer Jamal, former general secretary of the Small Tanneries Association in Kanpur, said with improved trade conditions, the industry now expects a gradual recovery and a return to normalcy in the coming months.

He said despite the severe impact of the high duty, units did not shut completely or lay off labourers. Many owners tried their best to keep their factories running, even at reduced capacity, and retain their workforce.

Currently, industrial units in Kanpur have suspended operations for 45 days during the ongoing Magh Mela in Prayagraj to ensure water quality and the “sanctity” of the Ganga river. These units were told to shut from December 31 to February 15.