Tariffs Hit India's Carpet Industry Hard
Bhadohi, India - The imposition of 50 percent tariffs by the United States on Indian carpets has brought business to a standstill for many exporters in this northern Indian state. According to industry insiders, no consignments have been dispatched to the US for the past month.
Surya Mani Tiwari, a 78-year-old carpet exporter from Bhadohi, has had sleepless nights since President Donald Trump announced the tariffs. "We are completely dependent on the US for our business and have no other markets," he said in an interview. "The tariffs have brought our production to a halt."
Tiwari's company exports carpets worth over 1 billion rupees (11.4 million) annually from Bhadohi, which is known as the carpet hub of India. The industry employs thousands of workers and contributes significantly to the local economy.
The US has been one of the largest markets for Indian carpets, accounting for about 70 percent of total exports. However, with the imposition of tariffs, many exporters have seen their sales plummet. "We are facing a crisis situation," said Tiwari. "Our business has come to a standstill."
Industry experts attribute the decline in US orders to the uncertainty created by the tariffs. "The tariffs have made Indian carpets uncompetitive in the US market," said Rakesh Kumar, director general of the Export Promotion Council for Handicrafts (EPCH). "Exporters are finding it difficult to sell their products at a price that is acceptable to both buyers and sellers."
The impact of the tariffs on India's carpet industry has been significant. According to data from the EPCH, exports of carpets to the US have declined by 30 percent in the first six months of this year compared to the same period last year.
While some exporters are exploring alternative markets, such as Europe and Australia, many others are struggling to adapt to the new reality. "We need a clear policy direction from the government to help us navigate these challenging times," said Tiwari.
As the situation continues to unfold, industry insiders are bracing themselves for further declines in exports. The next few months will be crucial in determining the long-term impact of the tariffs on India's carpet industry.
Background:
India is one of the largest exporters of carpets to the US, with a significant portion coming from Bhadohi. The imposition of tariffs has been a major concern for the industry, which employs thousands of workers and contributes significantly to the local economy.
Market Analysis:
The decline in US orders has had a ripple effect on the entire supply chain, from raw material suppliers to manufacturers and exporters. Industry insiders attribute the decline to the uncertainty created by the tariffs, making Indian carpets uncompetitive in the US market.
Economic Impact:
The impact of the tariffs on India's carpet industry has been significant, with exports declining by 30 percent in the first six months of this year compared to the same period last year. The decline is expected to continue unless a solution is found.
Next Developments:
Industry insiders are bracing themselves for further declines in exports and are urging the government to provide clear policy direction to help them navigate these challenging times.
*Reporting by Aljazeera.*
