Trump’s 50 pc tariff set to hit UP’s silk, carpet and brassware industries

The decision, announced just as exporters were bracing for a 25 per cent duty, doubles the rate to 50 per cent, starting August 27.

Billion dollar India-US trade

The move, linked to US trade measures against Russia, could derail India–US trade worth billions.

In the first quarter of this financial year alone, India exported goods worth $25.52 billion to the US while importing $12.86 billion in return. UP accounts for a significant share of these exports, including textiles, handicrafts, leather, and engineering goods.

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From Banarasi silk sarees and meenakari work to Bhadohi’s handwoven carpets and Moradabad’s intricate brassware, these products enjoy steady demand in the US market. Leather goods from Kanpur, auto parts from Meerut, and agricultural products from Agra also feature prominently in the export basket.

Impact on textile imports

For the Banarasi silk industry, the timing is particularly sensitive.

“In fashion, what’s in trend now will be out by next season,” said Rajat Mohan Pathak, a veteran exporter. “A delay in orders means both Indian exporters and American buyers lose. US traders may hold off orders and later negotiate prices to offset the tariff impact,” Pathak added.

In 2023–24, India exported $10.5 billion worth of textiles to the US, including silk, sarees, garments, man-made fabrics, and handicrafts. Nearly 28 per cent of India’s total textile exports are US-bound.

Christmas season orders at risk

The tariff announcement comes even as exporters are working on orders for the crucial Christmas retail season. Designs and contracts are usually finalised four months in advance. Any disruption now could be costly.

“This could be a pressure tactic by Trump,” pointed out business leader Harjinder Singh. “While companies had prepared for 25 per cent duty, doubling it is extreme. American buyers may also resist this because they cannot quickly shift sourcing away from India,” he added.

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Leather industry concerns

Kanpur’s leather sector, which exports products worth ₹2,000 crore annually, sends a quarter of that to the US. Exporters fear significant losses if American orders are cancelled or reduced.

“Sales from existing orders are already slow. Losing more would be devastating,” one trader complained.

Artisans anxious

Industry representatives warned that textile and carpet prices could rise 60–70 per cent due to the tariff hike, shrinking demand.

“If US companies push us to share the tariff burden, the entire supply chain will suffer—from exporters to artisans and weavers,” Pathak noted.

Moradabad’s brassware makers are equally worried. The city exports decorative handicrafts worth ₹1,500–₹2,000 crore annually, with the US as its largest customer. Such products are largely bought as luxury items, making them vulnerable to price increases.

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Harjinder Singh believed there is still room for optimism. “Higher prices in the US will create pressure on Trump. It’s not easy for American importers to replace Indian suppliers overnight,” Singh said.

As the August 27 deadline approaches, uncertainty looms over thousands of artisans, weavers, and small traders in Uttar Pradesh, whose livelihoods are tied to US-bound exports. For them, the tariff hike is more than a policy shift—it threatens to unravel a finely woven network of tradition, skill, and commerce built over generations.

(This article was originally published in The Federal Desh)