New Delhi [India], August 8 (ANI): Indian leather exporters are facing serious challenges after the United States imposed steep tariffs on Indian goods, hitting an industry that depends on exports for 80 per cent of its business.

Exporters have warned of heavy financial losses, cancelled orders and a likely shift of business to competing nations such as Bangladesh, Vietnam and Pakistan.

Leather exporter Umakant Dubey said the industry, which is heavily dependent on international markets, could lose major orders to rival countries.

'It will cause a huge loss to the leather industry. We will not be able to export goods and products. There is only 20% consumption of leather products in India; the rest of the business is completely international. Now, the orders will be given to Bangladesh, Vietnam and Pakistan instead of India,' he said.

Another exporter, Mohd Shamim Azad, said the new tariffs will increase costs, leading to cancellations of existing orders and serious consequences for the wider economy.

'It will have a huge negative impact on the leather industry in the nation...The businessmen who have got advance orders will be at a loss. Now, the parties (customers) will not take their orders that are being prepared here, as the cost will be high now...It is a big loss for not only the leather industry but also for the whole nation,' he said.

On Wednesday, the White House issued an Executive Order imposing an additional 25 percentage points in tariffs on Indian goods, raising the total tariff rate to 50 per cent. The US administration cited national security and foreign policy concerns, pointing to India's continued imports of Russian oil.

The order said these imports, whether made directly or through intermediaries, pose an 'unusual and extraordinary threat' to the United States and justify emergency economic measures.

Earlier, US President Donald Trump had said there would be no trade negotiations with India until the tariff dispute is resolved, following his administration's move to double tariffs on Indian imports.

When asked by ANI at the Oval Office whether talks could resume in light of the new 50 per cent tariff, he replied, 'No, not until we get it resolved.' (ANI)