US tariff jolts UP's export hubs; industry seeks govt bailout

Lucknow: Uttar Pradesh’s leading export hubs are reeling under the impact of a steep 50 per cent tariff imposed by the US on Indian imports, with exporters warning of job losses, stalled orders and shrinking market access.

Industry leaders from Noida, Kanpur and Varanasi said the tariff has put years of painstaking market-building at risk, even as protests and demonstrations erupted in several districts last week.

Lalit Thukral, President of the Noida Apparel Export Cluster, said the new tariff would have a “direct and severe impact” on the apparel sector, which contributes significantly to India’s export basket.

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“Noida alone exports apparel worth Rs 50,000 crore annually, with a quarter of that going to the US. Until now, shipments faced just 12 per cent duty. This sudden 50 per cent tariff will hurt our industry deeply,” he told PTI.

Thukral said the sector, which employs a large share of unskilled labour, particularly women, could see mounting job losses.

“After three or four decades of effort, we secured a strong presence in the US market. Breaking into new markets overnight is impossible,” he said, urging the government to consider waivers or interest-free loans to help exporters recover “at least 15-20 per cent” of the losses.

However, he maintained the industry stands by the Centre and the UP government in its decision but also said that it expects the interests of businesses and workers to be safeguarded.

In Kanpur and Unnao, the leather industry is also staring at a crisis.

Asad Iraqi, regional chairman of the Council for Leather Exports, told PTI that orders worth over Rs 2,000 crore destined for the US have virtually halted.

“Shipments are stalled, orders cancelled, and factories grinding down. Shifts are being cut, and the tariff may soon hit employment too,” he said.

The Kanpur-Unnao cluster, home to nearly 300 tanneries and employing nearly 10 lakh workers, accounts for over 40 per cent of India’s leather exports.

Exporters are looking to diversify into Russia, Gulf nations and Africa, while also focusing on the UK and Australian markets under ongoing trade talks. Iraqi said the delegation would meet Union Commerce Minister Piyush Goyal on September 4 to discuss relief measures.

Varanasi, a hub for Banarasi sarees, saw traders burning posters of US President Donald Trump at a protest last week. Saree trader Sanjeev Mehta said the tariff would disrupt online and courier-based sales to the US.

“We don’t even know yet how much tax will rise on individual items, but the impact on business is certain,” he said. Traders have urged Prime Minister Narendra Modi to take “strong steps” in response.

The fresh protests and statements follow similar concerns raised by carpet exporters in Bhadohi, mentha oil producers in Rampur, and brassware exporters in Moradabad.

Bhadohi MLA Zahid Beg of the Samajwadi Party on Monday wrote a letter to Prime Minister Narendra Modi, seeking his intervention in support of the district’s famed carpet industry, much of which depends on exports.

Beg had earlier written to CM Yogi Adityanath also, seeking a special bailout package to save the carpet industry, which employs 30 lakh people.

Exporters in Rampur and Moradabad say orders worth hundreds of crores of rupees have already been stalled, forcing layoffs.

The additional 25 per cent tariff that has come into force has effectively doubled duties on Indian goods.

The US Department of Homeland Security said the levies apply to all Indian products “entered for consumption, or withdrawn from warehouse for consumption” on or after August 27.

The Uttar Pradesh government has touted its flagship One District One Product (ODOP) scheme as a model for boosting exports and generating employment.

The state’s annual exports have surged from Rs 80,000 crore in 2017 to over Rs 2 lakh crore in 2025, driven by textiles, electronics, food processing and handicrafts.

Officials say ODOP has helped local artisans and small businesses access global markets through financial and marketing support.

However, exporters warn that steep tariffs in a key destination market like the US threaten to undo these gains.

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