US tariff cut brings relief to Indian exporters, city industry eyes revival

Kanpur: Indian exporters breathed a sigh of relief after the United States reduced tariff rates on Indian goods from 50 per cent to 18 per cent. The decision sparked optimism across the export sector, with exporters immediately reconnecting with American buyers to revive stalled operations.Exporters said the US had imposed a 25 per cent tariff in July 2025, followed by an additional 25 per cent penalty in August 2025, pushing the total duty to 50 per cent. The steep increase had virtually brought exports to the US to a standstill and triggered widespread concern across export-driven industries. With the sharp rollback in tariffs, exporters are now expecting a gradual recovery. Alok Srivastava, Assistant Director, Federation of Indian Export Organisations (FIEO), said Uttar Pradesh recorded a historic export turnover of Rs1.86 lakh crore in 2024–25. During the same period, the state accounted for nearly 19 per cent of India's total exports to the US, amounting to around Rs36,000 crore.
Srivastava said exporters in Uttar Pradesh and other parts of the country had been under severe pressure since April 2025 due to successive tariff hikes, with the August penalty delivering the heaviest blow.Former Chairman of the Council for Leather Exports (CLE) R.K. Jalan said India now enjoys the lowest US tariff rates in the South East Asia region, even lower than major competitors such as Vietnam. He credited the Ministry of Commerce and Industry and its officials for sustained negotiations that led to the reduction. Former CLE Chairman and leather exporter Mukhtarul Amin said exporters were fully prepared to resume shipments to the US, and pending orders were expected to start flowing in soon. "Exporters had been waiting for this moment. India's trade relations with the US have always been strong," he said.Amin noted that while India exports goods worth about Rs36,000 crore annually to the US, Kanpur alone contributes nearly Rs2,500 crore. Leather exporter Prerna Verma described the decision as a major relief and said that the sector would regain momentum within the next five to six months. Asad Iraqi, Chairman of the Regional Leather Export Council, said the reduced tariff had given fresh life to the export sector.