While expressing confidence in its ability to navigate the challenge of the U.S. tariff storm, Kolkata’s leather industry has also communicated concern about the European Union (EU) being pressurised by the U.S. to raise tariffs in response its continued import of Russian oil. By ILM.

India is among the countries hit with the highest tariffs in the world, so such a move by the EU would be devastating, as Europe accounts for four times as many exports as the U.S. While U.S. exports are worth Rs 1,100 crore (US$124.8 million), the EU exports are worth Rs 4,050 crore (US$459.5 million) annually.

Ramesh Juneja, Vice Chairman and Regional Chairman, Council for Leather Exports India, said that if the EU responded to “arm-twisting” by the U.S., it would be “excruciatingly painful” for the country.

Tapan Nandy, Bantala ILPA Leather Goods Park Chairperson, says the city of Kolkata relies on exposure to EU markets such as Germany, Italy, France, Spain and the Netherlands and that if that market is disrupted, roughly 200 leather goods exporters will suffer.

Juneja is hopeful that Parliament will back the UK Free Trade Agreement within a month, which would lead to 0% duty on leather goods exports to the country. He told Times of India that if EU remains steady, Indian leather products will be price-competitive, potentially attracting UK importers away from Bangladesh, Vietnam and Indonesia due to high quality and craftsmanship, allowing the industry to overcome the U.S. tariff impact within a month.