Dawn of Don's tariff: Higher rate for India's competitors offers hope for TN exporters

FOLLOWING US President Donald Trump's imposition of a 27% tariff on Indian exports, Tamil Nadu's auto, textile, and leather sectors are bracing for disruptions, particularly in labor-intensive industries.

- EXPRESS NEWS SERVICE @ Chennai/Coimbatore

Indian leather and textile exporters are navigating both challenges and opportunities in response to these tariffs. Abdul Wahab, MD of KH Shoes, warned of potential order cancellations and declining exports. India's total leather exports stand at $4.01 billion, with the US being the largest market, accounting for $873 million (21.71%). Tamil Nadu, which contributes 40% of this total, is especially vulnerable to the policy shift.

The state has already seen an 18% decline in exports, falling from $2.04 billion in FY 2023 to $1.66 billion in 2024. "The fall order season, crucial for holiday sales, has been severely affected."