【Jaipur, Bhad】American Tariffs Force Carpet Artisans to Set Up Stalls: ₹2000 Crore Textile Orders on Hold; 600,000 Jobs at Risk

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Editor’s Note

This ground report from India’s carpet belt reveals the human cost of trade tensions, where abstract tariffs translate into lost livelihoods and desperate survival strategies. As global economic policies reshape local markets, artisans like Harishchand embody the fragile intersection of craft, commerce, and crisis.

There are 5 to 6 lakh daily wage workers associated with the carpet business, whose jobs are at risk.
Ground Report

American tariffs are forcing carpet artisans to set up stalls for survival. Textile orders worth ₹2000 crore are on hold, putting 600,000 jobs at risk.
Harishchand, an old carpet artisan from Aurai Tehsil, had been weaving carpets for 10 years. On 18 August, he was laid off. At the time, he was in Lucknow seeking treatment for his son and urgently needed money. Now, he sells bananas in Bhadohi market to survive.

“About 60-70 of us worked in the company, but 40 were suddenly laid off. The supervisor told us foreign orders have stopped due to a recession. They may call us back in 5–6 months.”

Asif, a gemstone carver in Johari Bazaar, fears losing his job too.

“Ever since I read about the American tariff, I’ve been worried. This is our family trade. We don’t know any other work,” he says.

On 27 August, the US imposed a 50% tariff on Indian goods. With exports hit, production has slowed, and thousands of jobs are now at risk. Former RBI Governor Urjit Patel says 55% of Indian exports to the US are affected, with textile orders worth ₹2,000 crore already on hold.

Impact in Bhadohi, the Carpet Capital

In Bhadohi, the carpet capital of Uttar Pradesh, the impact is severe. Ijaz Ahmed, a daily-wage weaver, lost his job after mills closed.

“We’ve been making carpets for generations. Now we’re worried about surviving the next six months,” he says.

Roshan Kumar of Kaka Textiles adds,

“Millions in Bhadohi depend on daily wages from carpet factories. Many have turned to odd jobs or street vending. If this continues, more will be forced to leave the industry.”
Risk of Job Losses for 600,000 Workers
AICMA and CEPC delegation met Textile Minister Giriraj Singh on 15 August. A demand has been made to the Union Minister to provide an immediate relief package to the carpet sector.

According to the All India Carpet Manufacturers Association (AICMA), India exports carpets worth ₹17,000 crore annually, with Bhadohi-Mirzapur contributing 60%. Nearly two million people depend on this sector, and 600,000 jobs face immediate risk due to the tariff.
Piyush Barnwal, Secretary of AICMA and member of the Carpet Export Promotion Council (CEPC), likens the tariff hike to an “industrial pandemic.”

“Carpet goods worth ₹2,000 crore are stalled across the country, including ₹500 crore from Bhadohi-Mirzapur. This affects everything from raw material purchases to finishing.”

October to December is the peak export season, as orders shipped in October are sold abroad during Christmas. “Imposing a 50% tariff before this season could cause losses of ₹6,000 crore,” Piyush warns.
With 98% of the industry dependent on exports, the slowdown is already visible. The US first raised tariffs by 25% on 30 July, and carpet orders have been falling since.

70% of Bhadohi Carpets Go to the US

Bhadohi’s carpet industry depends heavily on exports, with 70% sent to the US alone. A 10% tariff in April had already strained the sector. On 30 July, tariffs rose to 25%, and on 27 August to 50%, forcing small factories to shut and large exporters to lay off staff or cut wages.
At Kaka-Overseas Limited, which exports entirely to the US, Executive Director Yadavendra Roy calls the tariff hike a “tariff bomb” and the industry’s biggest tragedy.

“Major orders have stopped. To protect jobs, we now call workers on rotation and send them on 20-day breaks,” he says.

Amjad Ahmed, director of Rugs Texture, adds,

“Exports need investment in shipment, production, and raw materials. Tariffs have broken cash flow. Old orders are being shipped at losses, and payments are uncertain. This crisis is worse than war.”
‘Without Bailout, Only 50% Will Survive’

Bhadohi MLA Zahid Beg warns,

Asif's sons Asil and Ali Khan are about 25 years old. They also do the same work with their father. Asif's father Azeem Khan also used to do the same work.
“Many handlooms are shut. We raised this in the Assembly and will write to the PM for a relief package. If support does not come soon, only half the industry will survive.”
Jaipur’s Johari Bazaar

In Jaipur, artisans face similar fears. Asif Khan, a gemstone carver with 35 years’ experience, continues shaping colourful stones into jewels but admits,

“Every day still brings new learning. Yet, we worry what will happen if orders stop.”

Asif says,

“During past recessions in the jewellery trade, many of my acquaintances left. Some joined factories, others became guards or e-rickshaw drivers. Once an artisan leaves this work, they never return.”

With skill and effort, he earns about ₹25,000 a month.
He explains that US Christmas orders usually start in July, with production peaking by September–October. “Now, after the new tariffs, orders are being cancelled,” he says.
Jaipur is the world’s largest hub for gems and jewellery, where emeralds, rubies, and sapphires are cut and polished. Its Sitapura SEZ hosts hundreds of workshops, employing around 100,000 people.
India is a major supplier to the US. In FY24, India’s gem and jewellery exports stood at $32.85 billion, with the US buying $9.95 billion (₹8,759 crore), or 30.28%. By 2024, this rose to $11.58 billion (₹10,194 crore), making up nearly 13% of US imports worth $89.12 billion.
More than 50% of the gems and jewellery products exported from Jaipur are exported only to America.

‘Orders from America on Hold, New Production Stopped’

Rajeev Arora, President of the Federation of Rajasthan Exporters Association, says the impact of US tariffs is immediate.

More than 50% of the gems and jewellery products exported from Jaipur are exported only to America.
“We usually receive our biggest Christmas orders in September–October, but now everything is on hold. Shipments have stopped; even containers are not leaving for America. If tariffs continue, exports may halve, throwing millions out of work.”
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⏰ Published on: September 13, 2025