India-US trade deal | Leather manufacturers in Tamil Nadu hope to rebuild lost volume exports

Chennai: Leather goods manufacturers in Tamil Nadu, who account for 30 per cent of the country’s total leather exports to the US, on Tuesday said the lowering of US tariffs on Indian imports to 18 per cent will allow exporters to restore healthier pricing and margins as existed before the 50 per cent tariffs came into effect in August 2025, while rebuilding lost export volumes.

Tamil Nadu is home to approximately 674 leather and footwear manufacturing factories, with major production hubs located in Ambur, Ranipet, Vaniyambadi, Trichy, Chennai, and Dindigul.

Israr Ahmed, past regional chairman of the Council for Leather Exports, said the US-India trade deal marks a major relief for exporters in Tamil Nadu’s leather sector.

Many exporters have been retaining their US customers amid prolonged uncertainty by offering substantial discounts often ranging from 20 per cent to as high as 30 per cent to offset the impact of tariffs.

“With the US now reducing tariffs on Indian goods to 18 per cent, a rate lower than those faced by key South Asian competitors, these heavy discounts are no longer necessary. This shift will allow exporters to restore healthier pricing and margins while rebuilding lost export volumes,” Ahmed added.

He stated that the coming years present a golden opportunity for the Tamil Nadu leather industry.

“Bolstered by India’s recently concluded trade agreements with the UK and the EU, combined with this US tariff rollback, the scope for export growth has never been stronger,” he concluded.