How Trump’s Tariffs Are Hurting India’s Handicraft Industry

I have been working in Jodhpur for eight years. Every wooden chair, every handwoven carpet, every small detail is made with care and skill. These items carry stories. They carry tradition.
But now things are difficult. The United States has added a fifty percent tariff on our exports. Because of this, many artisans and exporters are struggling. Orders are fewer. Workshops are quiet. People are worried. This is not just a trade problem. It is a threat to many families who depend on this work.

What Changed?

U.S has imposed up to 50% tariffs on some indian exports on 27.8.2025. Handicraft are one of those.The hardest-hit sectors include:

  • Handicrafts
  • Textiles
  • Carpets
  • Jewellery

The U.S. is India’s largest buyer in these categories, accounting for 60% of exports in some segments.

The Fallout: Numbers That Hurt

Rajasthan’s Furniture Sector

  • The Export Promotion Council for Handicrafts (EPCH) confirms a sharp decline in container shipments from Jodhpur and Jaipur due to the 50% U.S. tariff
  • Jodhpur: Shipments dropped from 100 to 25 containers (↓75%)
  • Jaipur: Exports fell by 45%, from 378 to 209 container

Bhadohi-Mirzapur Carpet Belt

  • 85% of U.S. orders are now on hold
  • India exports around ₹9,600 crore worth of carpets annually
  • India exports ₹9,600 crore worth of carpets annually
  • 60% go to the U.S.
  • Over 1.3 million livelihoods could be affecte

The U.S. accounts for nearly 40% of India’s total handicraft exports, according to EPCH. You can find more details in the EPCH’s official statement

Why This Is Serious?

Jobs at Risk – Artisans, weavers, and small workshops are facing reduced orders and income.

Financial Stress – Many exporters had taken loans against U.S. orders. Now with cancellations, repayment is becoming difficult.

MSME Crisis – The majority of handicraft exporters are small and medium enterprises (SMEs). They don’t have big financial reserves to absorb this shock.

What Can Be Done

Things are tough, but there are some ways to help i guess.

What the Government Can Do

  • Give loan breaks so small exporters and artisans can breathe.
  • Cut GST for handicraft exporters to lower their costs.
  • Help us find new buyers in Europe, Asia, and the Middle East

What the Industry Can Do

  • Sell more in India through fairs, shops, and exhibitions.
  • Use online sites like Amazon, Flipkart, and Etsy to reach buyers.
  • Share real stories of artisans so people feel a connection with the products.

Conclusion

The 50% tariff from the United States has caused big problems. From Jaipur’s wooden furniture to Bhadohi’s carpets, exports are falling fast. Many artisans are losing work. This is not just about trade. It is about people. It is about families. It is about saving our craft and culture.

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