Why are leather prices increasing in Texas?

Leather prices in Texas are rising due to factors such as tariffs on imported goods, cattle shortages, and global supply chain disruptions. These elements have led to higher costs for raw materials, impacting businesses that rely on leather for their products.

How are Texas businesses responding to the increase in leather prices?

Texas businesses like Little's Boot Company and Divide & Conquer are adjusting by raising prices to offset the higher costs of leather. They emphasize maintaining product quality and customer service despite the price increases.

What historical events have influenced leather prices in Texas?

Historically, leather prices in Texas have been affected by events such as disease outbreaks among cattle and changes in global demand. For example, in 2001, outbreaks of mad cow and foot-and-mouth disease in Europe led to a 20% surge in hide prices over two months, impacting leather goods prices in the U.S.

January 17, 2026

Surge in Leather Prices Affects Texas Businesses

San Antonio, Texas, January 17, 2026

Leather prices in Texas are experiencing significant increases, driven by tariffs on imports, cattle shortages, and supply chain disruptions. Local businesses like Little’s Boot Company and Divide & Conquer are raising prices to offset these costs while maintaining product quality. Industry experts predict leather goods prices could rise by 22% in the coming years. Historically, factors like disease outbreaks and global demand have also influenced leather prices. Consumers can expect to see higher prices for leather products due to these ongoing challenges.

San Antonio, Texas – Leather Prices Surge, Impacting Local Businesses

San Antonio’s Little’s Boot Company, a family-owned business operating for 111 years, is experiencing significant increases in leather costs, affecting their production of custom cowboy boots.

Sharon Little, a representative of the company, reported that prices for various types of leather, including calf, kangaroo, elephant, ostrich, and alligator, have risen substantially. Suppliers have indicated that these prices are expected to continue climbing.

Industry experts predict that the cost of leather goods could increase by 22% over the next two years, attributing the rise to factors such as tariffs, cattle shortages, and global supply chain disruptions.

Javier Trevino, owner of Divide & Conquer, a business specializing in custom guayaberas and leather jackets, noted that suppliers have removed price breaks based on quantity and have increased costs based on the color of the leather. This has compelled him to raise jacket prices by $50 to offset the higher expenses.

Despite these challenges, Little’s Boot Company maintains that their customers understand the price adjustments, as similar increases are observed across various sectors. The company emphasizes that the quality and service of their products remain unchanged.

Impact of Tariffs and Supply Chain Issues on Leather Prices

The surge in leather prices is partly due to tariffs imposed on imported goods, leading to higher costs for raw materials. Additionally, cattle shortages and global supply chain bottlenecks have further strained the availability of leather, contributing to the price hikes.

According to the Federal Reserve Bank of Dallas, 40.8% of Texas manufacturers reported increases in the prices paid for raw materials in December 2025, indicating a broader trend of rising input costs across the state.

Historical Context of Leather Price Fluctuations

Historically, leather prices have been influenced by various factors, including disease outbreaks among cattle and changes in global demand. For instance, in 2001, outbreaks of mad cow and foot-and-mouth disease in Europe led to a 20% surge in hide prices over two months, affecting leather goods prices in the U.S.

Similarly, in 2025, the Federal Reserve Bank of Dallas noted that tariff-related price adjustments were swift, with many firms passing on increased costs to consumers. This pattern reflects the sensitivity of leather prices to global economic and policy changes.

Conclusion

The rising cost of leather presents challenges for Texas businesses like Little’s Boot Company and Divide & Conquer, which rely on quality leather for their products. While these businesses strive to maintain their standards, consumers may notice higher prices for leather goods in the near future due to ongoing supply chain issues and economic factors.

Key Features

Feature	Description
Price Increase	Leather prices in Texas have risen significantly due to tariffs, cattle shortages, and global supply chain disruptions.
Business Impact	Companies like Little’s Boot Company and Divide & Conquer are raising prices to offset higher leather costs while maintaining product quality.
Historical Context	Past events, such as disease outbreaks among cattle, have historically influenced leather prices in Texas.