How U.S. Leather Tariffs Are Impacting the Global Leather Goods Supply Chain

“In fashion, change is constant—but lately, it’s the trade policies making the biggest waves.”

If you’re in the leather goods world—whether designing, sourcing, or selling—you’ve probably felt the pressure from the U.S.’s latest round of trade tariffs. These changes are doing more than raising eyebrows—they're reshaping global supply chains, prices, and strategy for businesses big and small.

What’s Actually Happening?

In an effort to protect American manufacturing and balance ongoing trade disputes, the U.S. has imposed new tariffs on imported leather goods—especially handbags, belts, wallets, and raw materials resulting in a severe impact to global supply chains.

Countries like Italy, India, and China, all major players, are being directly affected. Tariff hikes range from 10% to 25%, depending on the product category.

Trade map illustrating the impact of new U.S. tariffs on leather goods, highlighting import routes from Italy, China, and India.

The Pressure on Manufacturers

“We’ve had orders delayed, renegotiated, or canceled entirely.” – Leather goods manufacturer, Florence

For manufacturers abroad, the new tariffs are causing real disruption.

Profit margins are shrinking fast.

Clients are asking to move production elsewhere—or reduce order sizes.

Long-term relationships are being reevaluated.

Some suppliers are starting to look at “tariff-free” countries or considering regional manufacturing hubs to stay competitive.

For American brands, especially small and mid-sized ones, this is a tough spot.

Do they absorb the cost?

Do they raise prices?

Or do they find new suppliers—potentially sacrificing the quality and craftsmanship they’ve built their brand around?

Many are now:Doubling down on direct-to-consumer models to preserve margins

A Silver Lining: Innovation & Sustainability

This disruption is also creating space for innovation.

More brands are embracing:

✅ Transparent sourcing 

✅ Sustainable practices 

✅ Shorter, regional supply chains

“Consumers are willing to pay more when they know the story behind the bag. ”It’s no longer just about cost—it’s about values, transparency, and making products that matter.

What’s Next for Leather Goods?

The leather goods industry is in transition.

The old model—design in the U.S., manufacture overseas, import back—is being reimagined. Brands that pivot quickly, communicate clearly, and build resilient supply chains will have the edge.

As for the rest? It’s time to adapt—or get left behind.