Trump's 50% Tariffs Threaten India's Handicraft and Jewellery Exports

The US has imposed a 50% tariff on Indian imports, severely impacting Rajasthan's Rs 9000 crore handicraft market and India's Rs 11-12 lakh crore gems and jewellery trade. This move, driven by an executive order addressing Russian threats, risks significant economic disruption and employment challenges in India.

Navneet Jhalani, Coordinator of the Rajasthan Handicrafts Exporters Association, voiced concerns over the new 50% U.S. tariff on Indian imports, stating that customers have stopped placing orders. Rajasthan's handicraft market, valued at Rs 9000 crores and known for its labour intensity, faces a potential crisis that could affect thousands of workers.

"Rajasthan's handicraft exports are approximately Rs 9000 crores, with 50% going to the U.S.," Jhalani explained. "This tariff increase has halted both existing and new orders, impacting a vast number of people dependent on this sector," he warned. The tariffs are part of a broader U.S. strategy impacting India's export markets significantly.

Raju Mangodiwala, President of the Jaipur Jewellery Association, highlighted similar concerns for the Rs 11-12 lakh crore gems and jewellery trade, expressing hope for a resolution from the Indian government. Meanwhile, Zakir, a garment trader, underscored the distress these tariffs cause, noting the increased costs are unsustainable.