Bhadohi (Uttar Pradesh)

The carpet sector traders in Bhadohi have been severely impacted by the 50 per cent US tariffs imposed on Indian goods, as they are unable to move inventory, as claimed by the Carpet Export Promotion Council (CEPC).

Aslam Mahboob, who is the Director at Carpet Export Promotion Council (CEPC), emphasised that 60 per cent of the business from the "carpet city" goes to America, which is now facing uncertainty.

"The effect is severe. We had a deadline till August 26 that we can move inventory till then, but since the deadline there is no new production. In the industry of Rs 17,000 crore, 60 per cent of the business goes to America. Most of the goods are on hold. The factories have reduced their staff by 60-70%. Working under such tariffs is impossible," Mahboob told ANI here.

The CEPC director also demanded that the Central government give relief to the industry workers by bearing half the cost of tariffs, while the exporter and businesses manage the other half.

"This industry cannot be saved without the government's help," he told ANI, while urging the Centre's intervention.

The CEPC director highlighted that while getting alternatives to the US market is possible, getting to that place will take time.

All India Carpet Manufacturing Secretary Piyush Baranwal said a large share of the carpet business is exported to America.

"But 98-99% of carpets are exported, and the highest went to America, 60%. Because of tariffs from America, it is a full stop. We have no alternative," he said.

The 50 per cent tariffs on Indian goods imposed by the Donald Trump administration came into force on August 27, following a notice by the US Customs and Border Protection (CBP).

India had described the additional tariffs imposed by the United States as unfortunate.

"The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," a Ministry of External Affairs spokesperson said in a statement last month.

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Prime Minister Narendra Modi has stated that his government will protect small entrepreneurs, farmers, and livestock rearers, regardless of any pressure.