CHENNAI: Up to 75,000 jobs in Tamil Nadu’s leather sector are at risk after the US doubled tariffs on Indian imports to 50%, dealing a blow to one of the state’s largest export industries and prompting calls for urgent relief from the union government.
Tamil Nadu produces most of India’s leather goods and sends about 30% of its exports to the US. Some TN companies rely on the American market for as much as 60% of their sales.
“The tariff will hit the sector very hard,” said Abdul Wahab, MD of KH Shoes. “US buyers are demanding discounts of up to 20%, which they expect exporters to absorb. That is not viable,” he said.
He added that US brands have put new orders on hold until the dispute is resolved.
Industry supports the government’s stand in national interest as per Wahab and equally requests the government to support the industry by way of Focus Market Incentive Schemes to absorb the tariff costs. Exporters also want the TN government to provide a stipend of `10,000 for workers to fund reskilling.
Israr Ahmed, director of Farida Prime Tannery, said companies were selling at a discount to keep US consumers from switching suppliers. “This buys us time, but the US was always the growth market. These tariffs will hurt India for a long time if it stays on,” he said.