Trump Tariffs: Carpets, Handicrafts Exporters Demand Relief

Exporters from India's carpets and handicrafts industries have demanded the Union government's intervention to shield them from the impact of US President Donald Trump's reciprocal tariffs.

"We met with the government... minister (Piyush) Goyal explained to us that tariffs will have only a short-term impact," Neeraj Khanna, vice chairperson at the Export Promotion Council for Handicrafts, told reporters on Wednesday after a meeting with the Ministry of Commerce.

The government has said issues would resolve in three–four months, according to Khanna. "We requested for a three-month pause on tariffs for shipments that are ready or are in customs... wanted some stock to reach buyers at pre-tariff rates," he said. "We requested for a relief package, but the government has asked us to write to us formally."

Trump has announced a 10% baseline tariff on all countries, and a 27% duty on Indian imports during his speech at the Rose Garden on "Liberation Day" on April 2.

Ashok Gupta, a key carpets exporter from Panipat who also attended the meeting, added that their concerns had been noted, but no relief had been promised.

"The government is not looking at any subsidies for carpet exporters. They want us to fight competition and diversify exports," Gupta said. "The Indian carpet industry is at a disadvantage because Turkey and Egypt have been slapped with lower tariffs than us."

However, sources indicated that the government was not looking at protectionism in this trade environment, but rather self-reliance. It is also not looking to protect specific sectors but bring in the Interest Equalisation Scheme to support all exporters.

"The commerce and industry minister assured the exporters that the government will work to provide a conducive environment to enable them to successfully navigate the recent changes in the global trade environment," the government said in a statement on Wednesday.

"The country is working in a proactive manner and exploring solutions which are in the best interest of the nation. The team working on the BTA (Bilateral Trade Agreement) is exploring the right mix and the right balance, and he exhorted the exporters to not panic and look at the silver lining in the present scenario," it added.

India's exports have grown 6% to over $820 billion in the last financial year despite multiple headwinds, including the Red Sea crisis, Israel-Hamas war spilling over to the Gulf region, continuation of Russia-Ukraine war and slow growth in some developed economies, the government said.