Trump tariffs leave UP footwear, stone, glass indutries in distress
Besides Agra's leather and footwear industries, Firozabad’s glass industry, stone handicrafts and carpets, rugs, Zardoji are also facing a big crisis due to the tariffs imposed on India by US President Trump
The 25% additional tariff and import duty imposed by the Trump government of America on India has come into effect on August 27, 2025. Earlier, the Trump Administration had imposed 25% tariff on India. The additional 25% tariff has been imposed as a penalty for violating the condition of not buying oil from Russia.
Agra’s leather industry
Agra’s leather industry has fallen victim to a deep crisis due to this tariff. India used to export leather products worth 368.2 crore in 2020-21 globally, which increased to 482.8 crore in 2024-25 - an increase of 31%. Out of this, 64.5 crore was exported to America in 2020-21, which increased to 104.5 crore in 2024-25. This is an increase of 62%.
In 2022-23, India exported leather products worth Rs.1.17 billion to the US. About 20% of this comes only from the Kanpur-Unnao leather cluster of Uttar Pradesh and an equal share comes from the Agra cluster.
Agra has 15 large industries, 30 medium industries, 150 small industries and 10,000 micro units of leather products in which more than 2 lakh people are employed. In 2022-23, more than Rs 370 crore worth of leather footwear was exported from Agra to the US, which came down to around Rs 260 crore in 2023-24. After the new tariff, it will not be possible to sell even footwear worth Rs 100 crore to the United States.
Panic among leather entrepreneurs, labourers
There is an atmosphere of great panic among the leather entrepreneurs and labourers of Agra due to the US tariff. According to Puran Dawar, President of Footwear and Leather Industry Development Council and President of Agra Footwear Manufacturers and Exporters Chamber, this is the busiest time and peak season for Agra’s export factories. Winter and autumn footwear is made during this period.
"Due to the imposition of this tariff, our goods are lying dumped. The cost of the orders we have received from America is also increasing a lot. If this situation remains, we will not be able to work", Dawar, who is the owner of a company which manufactures 17,000 products and employs 1,500 workers, said.
According to Nazir Ahmed, owner of Agra based company Park Experts, which has an annual turnover of Rs 1000 crore, the American tariff is a disaster. He makes 400 to 500 designs and employs 800 employees.
"If we do not get American orders, our factories will become useless and workers will become unemployed", Nazir said.
"Forget about 50%, the leather industry cannot bear the burden of even 12.5% tariff", he said.
Nazir further said that due to the US decision to increase tariff rates, many buyers are now turning to China, Vietnam, Pakistan and Bangladesh which have lower tariff rates.
Transaction Disputes
Trump tariff has created a crisis of new orders for entrepreneurs. Employment in this industry is under threat. They are facing problems in selling the goods and there is also a transaction disputes as their concern is deepening on where to sell the goods they have prepared.
"They had received orders before the imposition of 25 percent and now the tariff has been increased to 50%. After the imposition of this tariff, a big transaction dispute has arisen", local entrepreneurs said.
"Ours is a labour-intensive industry. People get direct and indirect employment by making many products in it. He even says that it is the largest employment providing industry in the country", Mukhtaarul Amin, President of Leather Sector Circle Council, said.
According to the Council for Leather and Export, the Indian leather production industry holds an important place in the country’s economy. Agra AFRAMEC President Gopal Gupta says that the government should bring an incentive scheme to ensure availability of funds at minimum interest rate and to compensate for loss of orders.
In this regard, a delegation of leather industry businessmen from Agra and the country also met Union Commerce Minister Piyush Goyal and requested him for government help in this crisis.
The entrepreneurs demand that the government should support them in finding new markets, make incentive schemes for branding, the government should compensate for tariff losses, reduce the cost of raw materials and provide training for designing and efficiency so that they can survive in global competition.
Impact on Glass, Stone and Carpet Industries
Not only this, other industries in the Agra region like Firozabad’s glass industry, stone handicrafts and carpets, rugs, Zardoji are also facing a big crisis due to American tariff.
Firozabad’s glass industry used to export products worth Rs 2,000 crore, in which 50 percent of glass items were exported to America. After the new tariff, businesses worth about Rs 1,000 crore will be affected.
Similarly, 85 percent of stone handicrafts, carpet and rug industries were exported to America. Products worth Rs 300 crore were exported in carpets and rugs and Rs 300 crore was also exported in Zardoji and handicrafts, which will be a victim of this crisis.
Against the backdrop of American tariff and bullying, demands are made to strengthen the country's internal economy. "The government will have to provide all possible help to small and medium industries, which are already victims of demonetization and GST", the entrepreneurs asserted.
"At the same time, instead of depending on the American or European market for the sale of local products, in which we put our economic sovereignty at stake, we will have to take our economy in the direction of increasing the purchasing power of the people to prosper our market as well", they said.
[The writer, Dinkar Kapoor, is State General Secretary, All India People’s Front, Uttar Pradesh.]
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