In view of the continuous fluctuations in the tax and tariff rules of America, there remains a big challenge and uncertainty for the businessmen. Expressing concern about this, he has demanded intervention from the Government of India. Carpet traders said that the carpet business is getting crushed in the American tariff war.
Carpet exporter Darpan Baranwal said that from August 2025, the handmade carpet industry is bearing the burden of constantly changing trade tariffs. By adding an additional penalty of 25% to the earlier 25% base duty, the total effect came to 50%. After this, there was hope when there was talk of rates coming down to 25% and then potentially to 18%. But recently the new 10% global tariff imposed by the White House has again increased uncertainty. The changing percentages are not just statistics, they directly impact every manufacturer’s costs, orders and future plans.
‘Tariff policies are destabilizing the market’
Darpan Baranwal said that the ground truth is that in this ongoing policy and power tussle between two big global powers, the most pressure is falling on the manufacturer and the artisan. We reduced our margins to retain customers, balanced prices and continued production so that India’s handmade identity does not get diluted. But the frequently changing tariff policies are destabilizing the market built over years of hard work, if the situation continues then in the future the world famous carpet city and this business will come to an end.
‘Carpet exports stuck due to tariff fluctuations’
Vice Chairman of Carpet Export Promotion Council (CEPC) and carpet exporter Aslam Mehboob said that at present our carpet exports are stuck in the middle due to whatever tariff has been increased or decreased in prices. The message comes from US President Donald Trump and the White House that the tariff has been increased and sometimes information is received that it has been reduced, this is affecting the carpet trade.
Aslam Mehboob said that sometimes it is increasing by 10%, sometimes it is decreasing, like yesterday a news came that Trump Saheb has imposed 10% additional duty, things like this have become like the stock market. This is not very beneficial for the industry. There should be a clarity that whatever it takes, be it 10%, 20%, whatever, it should be clear and our next world is that VTA which is being signed on 15th March, should be signed as soon as possible. So that Indian businessmen also get confirmed.