Trump’s 50% tariff: Beginning to get foothold in US market, Agra’s leather belt takes a hit

The impact of US tariffs on Indian manufacturers is significant. Picture a bustling shoe factory in Agra, where workers in sweat-drenched vests move in sync along the assembly lines, their motions a well-practiced dance. Each shoe makes its way down the conveyor belt, pausing momentarily at various stations where skilled hands tackle specific tasks—removing wrinkles, brushing with cotton, lasting the seats, and activating the soles with heat. It’s a fascinating process that transforms raw leather into products ready for international markets, including the US. But then came the news: President Donald Trump’s decision to raise tariffs on Indian goods, increasing duties on leather footwear from 5-8% to a staggering 25%, with an additional 25% hike looming by August 27. This has thrown a wrench into the works for many in the industry. India’s leather exports surged from $3,681 million in 2020-21 to $4,828 million in 2024-25—a remarkable 31% increase. Exports to the US alone jumped from $645 million to $1,045 million, marking a 62% rise. For manufacturers who had just begun to carve out a niche in the US market, this tariff increase feels like a major blow. “There’s no doubt this will have an impact. We only have three customers in the US, as most of Agra’s exports have historically gone to Europe. But we were really trying to break into the US market. It’s such a vast consumer base, and any success there could have transformed our business. Now, this is going to slow us down,” shared Sushant Dhapodkar from Tej International Pvt Ltd. Agra stands as one of India’s key footwear manufacturing centers, alongside Kolkata, Kanpur, and Chennai. The city boasts around 10,000 micro-units, in addition to 150 small, 30 medium, and about 15 large-scale industries. Many of these manufacturers rely on leather imported from Turkey, which takes about 45–50 days to arrive by road, along with Indian leather sourced mainly from Kanpur and Chennai, and some from Jalandhar.

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