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India eyes tariff opportunity shift

07/04/2025
US President Donald Trump’s 26% tariff on Indian exports has raised concerns in Tamil Nadu’s leather, auto, and textile industries. While exporters fear order cancellations and rising costs, some believe India could gain a competitive edge over nations facing higher tariffs.

India’s leather exports, worth $4.01 billion, are particularly affected, with the US accounting for 21.71% of the market. Tamil Nadu, responsible for 40% of India’s leather exports, has already seen an 18% decline, dropping from $2.04 billion in FY 2023 to $1.66 billion in 2024.

Despite these challenges, industry leaders highlight India’s tariff advantage over Vietnam (46%), Cambodia (49%), and China (34%). Vice-president of the Federation of Indian Export Organisations (FIEO), Israr Ahmed, told local media that major brands may shift sourcing to India as a result.

While short-term disruptions are expected, India’s relatively lower tariffs could help attract new business in the long run.

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