Kanpur: The leather industry in Kanpur is facing one of its toughest challenges after the United States sharply increased import duties on Indian leather products to 60 percent — double the tariff imposed on China, and much higher than Pakistan’s 19 percent and Bangladesh’s 20 percent, reported the Roznama khabrein.
This steep hike has sent shockwaves through the industry, which annually exports leather worth around ₹2,000 crore to the US. Exporters fear the move could bring shipments to a complete standstill as American buyers withdraw their orders.
Leather exporter and factory owner Zafar Iqbal said shipments have already been halted due to the reluctance of US buyers to place orders. “When the tariff was 10 percent in May, we shared half the burden to save orders. But now, no one can bear such a huge cost. We have five containers ready, but we don’t know what to do,” he explained.
Another exporter, Nayer Jamal, pointed out that the industry was already grappling with strict environmental regulations such as the Ganga river pollution control measures. “The tariff burden will only make things worse,” he said, while still supporting the government’s stand that India should not bow to US pressure.
Trader Javed Iqbal warned that the tariff hike could jeopardize nearly one million jobs in Kanpur and neighboring Unnao. He said that lower tariffs on Pakistan, China, Vietnam, and Cambodia might divert American buyers to these countries. “We stand with the government even if it means suffering heavy losses,” he asserted.
Production Halt Despite Christmas Orders
Prerna Verma, a leather goods exporter, said confusion over the new policy has nearly halted production. “In recent years, demand has already fallen by 60 percent, and some units have had to lay off workers,” she added.
Council for Leather Exports (Central Region) Chairman Asad Iraqi confirmed that while Christmas orders have been received, production for the US market has been stopped. Iraqi recently met Union Commerce Minister Piyush Goyal in Delhi, where discussions took place about possible relief measures such as interest subsidies for a 25 percent tariff scenario. “But with a 50 percent or more tariff, these steps are not enough. Buyers and sellers can share an extra 5–10 percent cost, but such a massive increase is beyond anyone’s capacity,” he stressed.
The industry now awaits government intervention, even as buyers turn to other markets and the livelihood of lakhs hangs in the balance.
