The Indian leather hub of Ambur and Ranipet in Tamil Nadu has been crippled by the imposed 50% tariff on Indian leather goods by the U.S. Once a booming sector that employed millions, 50 of roughly 300 factories are shuttered up, workers have been laid off and families have been pushed into debt, local reports suggest. By ILM.

India exported US$4.4 billion worth of leather and footwear in 2024–25, with US$1 billion going to the U.S. Half of that was from Tamil Nadu. But the punitive tariff has made Indian products uncompetitive against rivals from Vietnam, Bangladesh, China and Mexico, where duties are lower.

For workers like 42-year-old P Gopi, a cutting machine operator at Farida Leather Factory in Chinnavarigam village near Ambur, the impact has been devastating. Sent on unpaid leave, he was unable to pay nursing college fees for his two daughters. Many migrant workers from states such as Odisha, Assam and Bihar have returned home or are stranded in dormitories, awaiting work.

Industry leaders warn that losses are running high, with unsold goods piling up in warehouses. While some factories are shifting operations abroad, others are exploring markets in Europe and the UK, though tariffs there remain steep.

The Council for Leather Exports and trade bodies in India have urged the government to provide temporary support schemes, but uncertainty remains. According to KKSK Rafiq, Managing Director of KKSK International Group, there is no solution in sight.