Tariff Cut Brings Fresh Hope to UP’s Leather Industry as Exports to US Set for Revival
Leather export from Kanpur was in serious trouble, but now it hopes to recover. The US was its biggest overseas market.
The turnaround comes after US President Donald Trump announced a sharp reduction in import tariffs on Indian products, bringing the rate down to 18%.
For the leather belt of Uttar Pradesh — home to hundreds of tanneries and manufacturing units — the decision has sparked renewed optimism after a prolonged period of financial strain.
Javed Iqbal, former chairman of the Board of Directors of the Council for Leather Exports, said the move could breathe life back into the struggling sector.
“This decision will surely help exporters regain lost business and slowly revive operations that had almost come to a halt,” he said.
A Major Hub Hit Hard
The Kanpur–Unnao belt hosts nearly 400 tanneries — 259 in Kanpur and the rest in Unnao — along with about 250 leather goods manufacturing units producing shoes, belts, jackets, and accessories for international markets.
Together, these units employ close to 10 lakh workers, with women forming a significant portion of the workforce and playing a crucial role in production.
However, the industry was dealt a severe blow last August when the United States imposed a steep 50% tariff on Indian leather products.
“No exporter could survive with such a heavy duty,” Iqbal explained. “The US has always been one of our strongest markets because of its high purchasing power, but that market was almost shut overnight.”
Exports Nearly Stalled
Business owners said shipments to the US dropped to almost zero following the tariff hike, pushing many companies into deep financial trouble.
Production slowed sharply, revenues dried up, and several units struggled just to stay afloat.
Leather exports from Kanpur and Unnao alone are estimated to be worth around ₹8,000 crore annually, making the downturn particularly damaging for the local economy.
Some manufacturers also pointed out that competing countries like Vietnam and Bangladesh quickly filled the gap in the US market, further shrinking India’s share.
Signs of a Comeback
Asad Iraqi, Regional Chairman of the Council for Leather Exports, said the tariff reduction has reopened doors that were previously shut.
“Exporters can now reconnect with US buyers and restart negotiations. By sharing a portion of the tariff burden, businesses can gradually pick up again,” he said.
He added that the crisis hurt not just big exporters but also small and medium units, many of which suffered heavy losses and barely survived the slowdown.
Naiyer Jamal, former general secretary of the Small Tanneries Association in Kanpur, echoed the sentiment, saying the industry now expects a slow but steady return to normal operations.
“Despite the hardships, most units tried not to shut down completely or lay off workers. Owners reduced capacity but made efforts to retain their labour force,” he said.
Temporary Shutdown Adds to Challenges
Adding to the difficulties, leather units in Kanpur are currently observing a 45-day shutdown during the ongoing Magh Mela in Prayagraj, as part of measures to maintain water quality and protect the sanctity of the Ganga River.
Factories have been ordered to remain closed from December 31 to February 15.
Looking Ahead
Despite the temporary halt, industry leaders believe the tariff cut marks a crucial turning point. If trade with the US resumes smoothly, the leather sector could gradually regain lost ground, restore production levels, and stabilise employment for lakhs of workers dependent on it.
