US Tariffs on Leather Goods from India in 2026: What US Brands Need to Know
The US tariff on leather goods from India has changed several times in 2026, and the 18% rate in the February trade framework is no longer the number to plan around. On 6 February 2026 the US and India announced a framework for an interim trade agreement that set out an 18% reciprocal tariff on select Indian goods, including leather and footwear. On 20 February 2026, the US Supreme Court ruled that the emergency-powers law (IEEPA) used for reciprocal tariffs does not authorize tariffs. Since 24 July 2026, most goods from India face an additional 10% duty under Section 301 of the Trade Act of 1974, on top of the normal US duty for the product. Rules can change quickly, so confirm the current duty with a licensed customs broker before you order.
For US brands, the useful question is how to plan around a rate that keeps moving: how to price, how to structure quotes and how to avoid being caught out. This guide sets out the timeline and then practical steps.
What changed in 2026, in plain terms
| Date | What happened |
|---|---|
| Late August 2025 to early February 2026 | A combined additional rate of 50% applied to many Indian goods, including leather and footwear |
| 6 Feb 2026 | The US and India announced a framework for an interim trade agreement, setting out an 18% reciprocal tariff on select Indian goods, including leather and footwear |
| 7 Feb 2026 | A 25% additional duty, part of the earlier 50%, was removed |
| 20 Feb 2026 | The US Supreme Court ruled that IEEPA does not authorize tariffs; collection of IEEPA tariffs stopped on 24 Feb 2026 |
| 24 Feb to 24 Jul 2026 | A temporary 10% surcharge on most imports applied under Section 122, which is limited to 150 days |
| From 24 Jul 2026 | An additional 10% Section 301 duty applies to most goods from India, with exemptions set by tariff code |
| Status at the time of writing | The Section 301 duty has been challenged at the US Court of International Trade; a final US–India agreement had not been published |
Two cautions apply. First, the Section 301 duty could be changed by the courts, by USTR or by a future US–India agreement. Second, exemptions are defined product by product, so whether your goods are covered depends on how they are classified at the border.
What the current rules mean for your product
The duty matters most when you set your retail price. Leather jackets, bags, belts and footwear are each classified differently, and the normal duty rate can vary widely between codes, especially for footwear.
- Ask your broker how duties stack. For Indian goods, the 10% Section 301 duty is generally added on top of the normal duty for your product rather than replacing it. Confirm the full stack for each code so your costing is complete.
- Check classification. The commodity code for a leather jacket differs from that for a handbag or a pair of shoes, and the duty can differ accordingly.
- Check timing. Ask which rate applies to goods that are already shipped or in transit when a rule changes.
- Ask about earlier entries. If you imported goods while IEEPA tariffs applied, ask your broker whether any refund process covers them.
- Do not rely on supplier assurances. The importer of record is responsible for what is declared.
Plan for scenarios, not a single number
The additional duty on Indian goods has moved from 50% to 10% during 2026, under three different legal authorities. That is a reason to build flexibility into your pricing.
| Scenario | How to plan |
|---|---|
| Section 301 duty stays at 10% | Use normal duty plus 10% as your base case and price accordingly. |
| A court ruling removes or narrows the duty | Keep price lists flexible so you can pass on savings or protect margin. |
| A US–India agreement sets new rates | Rates could fall or be restructured; review costings when any official notice is published. |
| Rates rise or new measures are added | Stress-test one or two key styles to see whether margin survives or whether you would delay, re-source or reprice. |
| Classification changes | Keep your product documentation clean so your broker can respond fast. |
Avoid promising fixed retail prices for next season on the assumption that today's rate will hold. Build a duty line into every costing sheet, and update it on a regular schedule.
Diversify without abandoning what works
Many US brands compare India with other sourcing countries, including China, Pakistan (Sialkot), Turkey, Vietnam and Bangladesh, with Portugal and Italy considered for premium footwear. Each has its own US duty position, which can change, so compare current landed costs with your broker instead of copying last season's decision. A wider country comparison is in India vs China vs Pakistan vs Turkey: Where Should You Source Leather Goods?, and brands that also sell in the UK can review India–UK Trade Deal (CETA) and Leather Goods: What Zero Duty Means for UK Brands.
Practical ways to diversify:
- Split a collection across two countries by category, such as jackets in India and another category elsewhere.
- Run a small pilot order with a second supplier, so you have a tested alternative.
- Choose suppliers that can make multiple categories, which gives you flexibility within one relationship.
- Keep specification documents portable, so a style can move if conditions change.
India's leather clusters (Noida and Delhi NCR, Agra, Kanpur, the Chennai–Ranipet–Ambur–Vellore belt and Kolkata) cover jackets, bags, belts and footwear, which makes it feasible to keep several categories with one country while diversifying elsewhere. More on the NCR cluster is in Leather Manufacturing in Noida and Delhi NCR: Why Global Brands Source Here.
Lead times and timing
Tariff changes affect timing as much as cost. A late shipment can land under a different rule than you planned, and a rushed shipment costs more in freight.
- Build a buffer into your calendar for sampling, production, inspection, shipping and customs.
- Place season-critical orders earlier than you think you need to.
- Avoid bunching all shipments in one window. Staggered dispatch reduces exposure to any single date.
- Ask your factory what could delay production, such as leather availability or hardware lead times, and plan around it.
Incoterms basics for first-time importers
Incoterms define who pays for what and who carries risk at each stage. They also affect who deals with import duty.
| Term | In simple terms | Who usually handles US duty |
|---|---|---|
| EXW (Ex Works) | You collect goods at the factory and arrange everything from there. | Buyer |
| FOB (Free On Board) | Factory delivers goods onto the vessel at the Indian port; you take over from there. | Buyer |
| CIF (Cost, Insurance, Freight) | Factory pays freight and insurance to the US port; risk transfers earlier than cost does. | Buyer |
| DDP (Delivered Duty Paid) | Seller delivers to your door and takes on duty and clearance. | Seller, but the price will include a risk allowance |
Many brands buying from Indian factories use FOB or similar terms and handle import clearance through their own broker. That keeps you in control of classification and duty, which is useful while rules are moving. Confirm terms in writing and verify with your forwarder and broker.
How to ask a factory for a duty-ready quote
A duty-ready quote lets you calculate landed cost without back-and-forth. Include these items in your request:
- Product details: style, materials and construction, with a short description your broker can use for classification.
- Proposed commodity code: ask the factory what code it uses for export, and compare with your broker's view.
- Incoterm and port: for example FOB with a named Indian port.
- Itemized price: product, packaging, labels and any tooling shown separately.
- Carton data: quantity per carton, carton dimensions and weights, which affect freight.
- Country of origin and material statement: how the goods will be marked and documented.
- Price validity and change terms: how long the quote holds and how a duty change would be handled.
- Lead time: sampling, production and ready-to-ship dates.
Frequently asked questions
What is the US tariff on Indian leather goods?
At the time of writing, most leather goods from India are subject to the normal US duty for their tariff code plus an additional 10% Section 301 duty, in place since 24 July 2026. Exemptions are set by tariff code, and the duty is being challenged in court. Confirm the current rate for your product with a licensed customs broker.
What happened to the 18% rate announced in February 2026?
The 6 February 2026 framework set out an 18% reciprocal tariff on select Indian goods, including leather and footwear, and a 25% additional duty was removed from 7 February 2026. On 20 February 2026, the Supreme Court ruled that IEEPA, the law used for reciprocal tariffs, does not authorize tariffs, so those tariffs ended. Later duties were imposed under other laws.
How is footwear imported from India to the USA taxed?
Normal US duty rates for footwear vary widely by construction and material, and footwear from India is currently subject to the additional 10% Section 301 duty unless its tariff code is exempt. Ask your customs broker to confirm the code and the total rate that applies to your product on the date of import.
Will the current 10% duty last?
Not necessarily. The Section 301 duty is being challenged in court, and a US–India trade agreement could change the rates. Plan with scenarios and keep your pricing flexible until the position is settled.
Should US brands move production out of India because of tariffs?
Not automatically. Compare current landed cost, quality and lead times across countries rather than reacting to one headline. Many brands pilot a second supplier so they can shift volume if conditions change.
Conclusion
The US tariff on leather goods from India is no longer the 18% announced in February 2026: at the time of writing, most goods from India are subject to normal duty plus an additional 10% Section 301 duty, and that can change. Treat any rate as a planning scenario, build duty into every costing sheet and confirm details with a licensed customs broker. Request duty-ready quotes, understand your Incoterms and keep a second supplier option alive.