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Tariffs hit boots, bags and more as leather prices jump — and relief could be years away

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Tariffs hit boots, bags and more as leather prices jump — and relief could be years away


Different types of leather are seen at the Rio of Mercedes cowboy boot factory, on July 31, 2025, in Mercedes, Texas.

Ronaldo Schemidt | AFP | Getty Images

Bootmaker Twisted X — known for its Western footwear — was thrown into chaos overnight when President Donald Trump imposed sweeping tariffs on imports in April.

The company turned a conference room at its Decatur, Texas, headquarters into a “tariff war room” as import costs on its finished work boots surged, shipments were paused mid-transit and invoices fluctuated so wildly that staff found themselves recalculating margins by the hour.

“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 wasn’t alone. Leather retailers big and small are facing similar challenges, and the result has been higher prices at the register that are unlikely to come down anytime soon.

Pre-tariff inventory is gone, while replacement orders cost far more. The products hitting shelves now were manufactured with more expensive hides, subjected to pricier foreign processing and shipped with higher freight costs than last year’s merchandise, industry experts said.

The Yale Budget Lab projects that leather goods prices will remain elevated by nearly 22% for at least the next one to two years, driven by inflation, supply chain bottlenecks and heavy tariff exposure, particularly across China, Vietnam, Italy and India.

“The reason why leather is hit so hard is twofold,” said John Ricco with the budget lab. “No. 1, some of these tariff rates that are the highest are placed on different countries where we import most leather. The second reason is that we just import a lot of leather, and, more broadly, apparel-related products from these trading partners than we make.”

The costs have already shown up for brands like Tapestry, owner of handbag makers Coach and Kate Spade. Executives told investors in August that tariff-related expenses could total $160 million, warning of “greater than previously expected profit headwinds” moving forward.

Chasing low costs

A pair of Twisted X boots starts the way most U.S. leather goods do: as a raw, salted cow hide from an American ranch. That hide is shipped overseas, usually to Asia, to be tanned into leather. For Twisted X, roughly half of its products are tanned in China, down from 90% in 2017, Reddy said.

Once turned into leather, the material typically is shipped to another factory — often in China, Vietnam, Mexico or India — to be cut, stitched and assembled, before finally returning to the U.S. as a finished product.

Under normal conditions, that global supply chain kept costs low. But reliance on foreign production backfired when the new duties took effect, Reddy said.

“When tariffs happened, everything stopped,” said Kerry Brozyna, president of the Leather and Hide Council of America. “So they [China] couldn’t take shipments in because if they took them in and they computed in the price of the tariff, they wouldn’t be able to sell them.”

Currently, the U.S. leather trade deficit is one of the widest in manufacturing. In 2023, the U.S. imported $1.37 billion in leather apparel while exporting just $92.7 million, a roughly 15-to-1 deficit, according to the Census Bureau. China alone supplies about one-third of all leather goods imported into the U.S.

“Being so reliant on many overseas productions methods ended up hurting many people in the industry in the beginning when they didn’t know exactly what was going to happen,” Reddy said. “At Twisted X, we have been working for a while to reduce reliance on China.”

As the duties took effect, Twisted X and many other leather companies rushed to exit China and encountered new problems: bottlenecks in Cambodia and Bangladesh, longer lead times in Vietnam, and a sudden 50% tariff on many Indian leather exports imposed in August.

By late summer, nearly every leather company was paying more at every stage — for hides, tanning, assembly and re-importation, according to Reddy.

“We saw all our channels to make boots keep getting more expensive until we were able to figure out a good solution,” Reddy said.

Conglomerates like Steve Madden are also feeling the impacts.

“The third quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States,” Edward Rosenfeld, chairman and CEO of Steve Madden, said on an earnings call in November.

Price increases

Many companies absorbed what they could, but that buffer is fading, Ricco said. Despite rerouting supply chains and moving production, Twisted X said it still had to raise prices around 1% to 3% this year.

“We look at it as a success,” Twisted X’s chief marketing officer, Tricia Mahoney, told CNBC. “Many competitors were looking at bigger increases and but we made sure to prioritize our customers and keep the prices as stable as possible. Next year could be tough but we are more prepared than ever.”

Already, leather luxury prices are up. Chanel’s iconic Classic Flap bag is about 5% more expensive than it was last year, after yet another round of price hikes this spring, according to luxury retail pricing data.

But, by 2026, the leather industry’s price shock will likely be more prominent, Ricco said. Analysts expect prices for leather footwear and accessories to rise roughly 22% over the next year or two and around 7% long term as higher tariffs, freight costs and scarce premium hides move through the system.

“2026 is going to probably be where rubber meets the road,” Ricco said. “They [leather companies] have to make these decisions about whether to pass cost increases on to consumers, whether to cut jobs and whether to reduce payments to shareholders.”

Domestic declines

Workers at the Rio of Mercedes cowboy boot factory put the finishing touches on boots on July 31, 2025, in Mercedes, Texas.

Ronaldo Schemidt | AFP | Getty Images

The decline of a once-booming domestic leather manufacturing industry is also reducing the options companies have to pivot away from the global supply chain.

In the 1950s, manufacturers employed more than 300,000 people in roughly 1,000 tanneries nationwide, mainly spread across the Midwest and Northeast, according to the Leather and Hide Council of America.

The workforce has fallen to around 50,000 in 2025, with the number of tanneries dwindling to a few hundred, per the council.

Reddy said the so-called golden age of domestic manufacturing is long gone.

The burden of tariffs has had the steepest impact on brands that rely on finished goods from Asia — not companies sourcing leather domestically. So far, rather than restoring U.S. manufacturing, as the Trump administration had predicated the tariffs on, many brands have responded by reshuffling suppliers overseas to contain costs, according to industry experts.

Women work in a leather factory in Kolkata, India, on November 25, 2025.

Nurphoto | Nurphoto | Getty Images

Cattle shortages

U.S. leather companies are also dealing with a raw material shortage, as there are simply fewer cattle hides to work with.

The U.S. cattle herd is at its smallest point since the 1950s following prolonged drought, rising feed costs and herd liquidation. Since hides are a mandatory byproduct of dairy and beef production, fewer cattle mean fewer hides — even as global demand for top-grade leather persists for handbags, upholstery and footwear.

“Few cattle means that what hides are left makes it more expensive to produce boots with high-quality leather that we use,” Reddy said.

For shoppers hoping for a discount by trading down for a synthetic, alternatives haven’t been spared either.

Many faux-leather and polyurethane materials rely on petrochemical inputs sourced from Asia, which also fall under the new tariff schedules. Retailers and industry analysts said synthetic footwear and handbags are seeing mid- to high-single-digit cost increases, according to industry estimates.



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Autonomy is not intelligence: why the future of unmanned systems must remain human

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Autonomy is not intelligence: why the future of unmanned systems must remain human


Quantum Systems is a Business Reporter client

In the midst of Russia’s war against Ukraine, one idea has gained remarkable traction: that fully autonomous drones represent the future of defence. Fewer humans, more machines, faster outcomes. Autonomy, in this narrative, is treated as a proxy for progress and often even for intelligence.

This is a dangerous misconception.

Ukraine’s ongoing resistance against Russia has shown the world, in the starkest possible terms, how profoundly modern warfare has changed. Large, expensive and slow-to-adapt systems are no longer the decisive factor. Instead, smaller, software-defined unmanned systems dominate the battlefield because they are fast to adapt, cost-efficient and integrated into a broader information ecosystem.

What we’ve learned from Ukraine is that what matters most is not whether a system can operate without human input for as long as possible. What matters is whether it can help humans see, understand and decide faster than their opponent.

The reality of the modern battlefield

Nowhere else has it become so clear how unforgiving real-world conditions are for technology. Systems operate in contested and unpredictable environments. GPS signals disappear. Communications are disrupted. Data is incomplete, outdated or contradictory. These are no longer edge cases; they are the baseline.

Fully autonomous systems may perform impressively in controlled settings, but in reality, when circumstances shift unexpectedly, the risk of failure increases sharply. Intelligence is not about operating in a vacuum but handling ambiguity, context and uncertainty – areas where humans remain essential.

This is why autonomy is so often mistaken for intelligence. We assume that removing humans from the loop automatically makes a system more advanced. In reality, it often removes the very element that allows systems to cope with complexity.

What AI is actually good at

Artificial intelligence has become indispensable in modern unmanned systems, not because it replaces human judgment but because it addresses a very practical problem: cognitive overload.

Modern conflicts generate enormous amounts of information: video feeds, sensor data, maps, alerts and signals arriving simultaneously. No human can process all of this in real time. AI excels at filtering noise, prioritising relevant signals, detecting patterns and preparing information for decision-makers.

In this sense, AI’s most meaningful role today is supportive. It shortens the path from observation to understanding, reduces the likelihood of human error in high-pressure situations and enables faster, better-informed decisions. The final responsibility, however, remains in human hands.

Team player: AI’s most meaningful role today is supportive (Quantum Systems)

Meaningful human control is not a brake on innovation

New technologies are transforming warfare while raising uncomfortable moral questions. Who is responsible when machines make life-or-death decisions? How do we ensure compliance with international law? How do democratic societies compete with adversaries who ignore ethical limits altogether?

The answer cannot be to stand still. Speed matters, and those who disregard rules will not pause for ethical debate. Equally, the response of democratic societies cannot be to abdicate responsibility.

Meaningful human control remains crucial. This does not mean humans must manually operate every function – automation handles speed, repetition and data processing. Humans provide context, judgment and ethical responsibility when needed, especially in complex or ambiguous situations. We must continue to invest and drive innovation – maintaining a technological edge means that this moral imperative can remain our strength, not a disadvantage on the battlefield.

Autonomy in weapons systems is not new – from automated air defence systems to fire-and-forget missiles. What AI does is accelerate and expand existing forms of automation. The decisive factor is therefore not whether autonomy exists, but how, under what rules and with what transparency oversight is ensured when systems encounter ambiguous circumstances.

Regulation must keep pace with reality

Regulation in defence technology is essential. Clear red lines must be drawn where ethics, responsible use and international law are concerned. At the same time, regulatory frameworks must be fast and adaptive enough to reflect today’s security realities.

Throughout Europe, clearer and more agile rules are needed to enable responsible innovation rather than stifling it. If regulation lags too far behind technological and geopolitical developments, democratic states risk losing the ability to protect their people, their sovereignty and their values.

This debate matters not only for Ukraine, but for Europe’s own security – from the Baltic states sitting on NATO’s Eastern flank to critical infrastructure protection at home.

The future will be unmanned – but not unhuman

Some argue that AI will inevitably make wars faster and more dangerous. The truth is more nuanced. AI can also reduce mistakes, improve situational awareness and help protect lives, if used responsibly.

Progress will not be defined by removing humans completely from the equation. It will be defined by how well systems support people under pressure, how transparently they communicate their limits and how firmly responsibility remains with human decision-makers.

The future of defence will indeed be increasingly unmanned. But intelligence is not measured by autonomy alone. And if we get this wrong, we risk building systems that are fast, but blind – powerful, but clueless in complex situations.

For democratic societies, that is a risk we cannot afford.

Vito Tomasi, Managing Director
Vito Tomasi, Managing Director (Quantum Systems UK)



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Japan election: Stocks surge as Takaichi secures historic election victory

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Japan election: Stocks surge as Takaichi secures historic election victory



Prime Minister Sanae Takaichi’s Liberal Democratic Party secured 316 out of 465 seats in Sunday’s election.



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Top stocks to buy: Stock recommendations for the trading week starting February 9, 2026 – check list – The Times of India

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Top stocks to buy: Stock recommendations for the trading week starting February 9, 2026 – check list – The Times of India


Top stocks to buy (AI image)

Stock market recommendations: Motilal Oswal Financial Services Ltd recommends the top stock picks for the week starting February 9, 2026. These are: SAIL, and Ventive Hospitality. Here’s a detailed analysis:

Stock name CMP (Rs) TP (Rs) UPSIDE (%)
SAIL 159 175 10%
Ventive Hospitality 772 1000 30%

SAILSAIL delivered an in-line operating performance in 3QFY26, with healthy steel volumes offsetting weak realizations, underscoring improving execution and cost discipline. Sales volumes rose 16% YoY to 5.15 million tonnes, aided by aggressive inventory liquidation and stronger market outreach, while inventory levels declined to 2.4 million tonnes, releasing working capital and strengthening the balance sheet. Although average realizations softened, profitability was supported by scale benefits, stable coking coal costs during the quarter, and disciplined operating controls. Management commentary points to a more constructive near-term outlook, with January price hikes expected to fully reflect in February realizations, further inventory reduction planned in 4Q, and operations normalized across key plants. Medium-term visibility is reinforced by sustained volume targets, ongoing deleveraging, and a structured capex program focused on modernization and efficiency gains, which should structurally improve cost competitiveness over the cycle.Ventive HospitalityVentive Hospitality (VENTIVE) operates marquee luxury assets in the hospitality (77%) and annuity (23%) segments. It is expanding its presence beyond Pune to high-growth cities like Bengaluru & Navi Mumbai, reducing concentration risk. Alongside Soho House partnership (membership-based revenue), these expansions support stronger occupancy, revenue and medium-term earnings visibility. In its hospitality segment, international operations account for 54% of segment revenue, and is expected to deliver 21%/27% revenue/EBITDA CAGR over FY25-28, supported by new developments, rising luxury demand, and improved connectivity. Over FY25-28, we expect VENTIVE to deliver a 21% CAGR in both revenue and EBITDA, driven by rapid multi-city expansion, diversification into membership-led hospitality via Soho House and strong overseas performance led by high-ADR Maldives assets and expansion into Sri Lanka. Adj. PAT is likely to double, supported by operating leverage, lower interest costs and reduced tax burden.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)



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