A growing wave of tariffs and supply chain disruptions is pushing up prices across the U.S. leather goods industry, leaving companies scrambling to manage costs and consumers facing higher prices at checkout.
At its headquarters in Decatur, Texas, footwear maker Twisted X converted a conference room into what executives dubbed a “tariff war room.” The move came as import costs for finished work boots surged, overseas shipments were paused mid-transit, and supplier invoices fluctuated so sharply that staff were forced to recalculate profit margins multiple times a day.
“A lot of other leather companies had to pause shipments because of the chaos, and it felt like prices were going all over the place before you could take account,” Twisted X CEO Prasad Reddy told CNBC. “It was a very uncertain time.”
Twisted X’s experience reflects a broader industry struggle. Leather retailers, from small businesses to major brands, are grappling with higher costs that are now being passed on to consumers. Industry experts say these elevated prices are unlikely to ease in the near future.
Pre-tariff inventory has largely been exhausted, and replacement orders are coming at significantly higher prices. Products now reaching store shelves were made with more expensive hides, processed abroad at higher costs and shipped under steeper freight rates than last year’s merchandise.
According to projections from the Yale Budget Lab, prices for leather goods are expected to remain nearly 22% higher for at least the next one to two years. The increase is being driven by a combination of inflation, supply chain bottlenecks and heavy tariff exposure—particularly involving imports from China, Vietnam, Italy and India.
“The reason why leather is hit so hard is twofold,” said John Ricco of the Yale Budget Lab. “First, some of the highest tariff rates apply to countries where the U.S. imports most of its leather. Second, the U.S. imports far more leather and apparel-related products from these partners than it produces domestically.”
Major brands are already feeling the financial impact. Tapestry, the parent company of Coach and Kate Spade, told investors in August that tariff-related expenses could reach $160 million. Company executives warned that these costs would create “greater than previously expected profit headwinds” in the months ahead.
With tariffs showing no immediate signs of easing, industry leaders say consumers should expect higher leather goods prices to persist, reshaping purchasing decisions and squeezing margins across the retail landscape.