NewKerala.com

Key Points

American buyers have immediately halted both existing and new orders following the implementation of 50% tariffs on Indian imports. This crisis particularly impacts Rajasthan's handicraft industry worth Rs 9000 crores, which sends half its exports to the US. The labor-intensive sector supports approximately 300,000 direct and indirect jobs now at risk. Industry leaders are urgently seeking government intervention to address this devastating trade barrier.

Key Points: US 50% Tariffs Halt Rajasthan Handicraft Orders Affecting 3 Lakh Jobs

  • US 50% tariffs trigger immediate order cancellations from American buyers
  • Rajasthan's Rs 9000 crore handicraft industry faces severe employment crisis
  • 50% of Rajasthan's handicraft exports traditionally go to the United States
  • Labor-intensive sector supports direct and indirect employment for 300,000 people
3 min read

Buyers have halted both existing and new orders: Rajasthan Handicrafts Association chairman on US tariffs

Rajasthan handicraft exports face crisis as US 50% tariffs force buyers to halt orders, threatening Rs 9000 crore industry and 3 lakh jobs in labor-intensive sector.

"Our buyers have halted both existing and new orders. Three lakh people will be affected due to this - Navneet Jhalani, Rajasthan Handicrafts Exporters Association"

Jaipur, August 27

Navneet Jhalani, Coordinator, Rajasthan Handicrafts Exporters Association expressed concern over the US 50 per cent tariffs of Indian imports stating that their customers have halted the orders.

Jhalani informed that Rajasthan's handicraft market is worth Rs 9000 crores and being a labour-intensive sector, it provides direct and indirect employment to many people.

"Rajasthan's handicraft export is around Rs 9000 crores. Out of the total exports, 50% go to the US. Now the tariff on our products will rise to 50%. Our buyers have halted both existing and new orders. Being a labour-intensive sector, it provides direct and indirect employment to many. Three lakh people will be affected due to this," Jhalani said.

Earlier, Raju Mangodiwala, the president of the Jaipur Jewellery Association, stated on Wednesday that the US tariffs on Indian imports will have a significant impact on India's gems and jewellery sector.

He further hoped for a solution from the Union Government, stating that the gems and jewellery trade from Jaipur to the US is worth Rs 11 to 12 lakh crores.

"Trump's tariff will have an impact on India, particularly on the gems and jewellery sector. There is currently an atmosphere of fear among those associated with the gems and jewellery business. Still, Prime Minister, Narendra Modi, will find a solution to this soon. The gems and jewellery trade from Jaipur to America is worth 11 to 12 lakh crores, which will be affected. However, if trade routes are opened to Russia or other countries, the impact of these tariffs can be mitigated," Mangodiwala told ANI.

Zakir, who is a garment businessman, said that the US tariffs have increased their concern, mentioning that he can't sustain in the market without US business. He stated that goods worth USD 1 million have become more expensive by USD 166 million.

"There is a deep concern among garment traders about the tariff imposed by America. It is not possible to sustain his business without the American market. He said that the goods which used to cost 1 million dollars earlier, have now become costlier by 166 million dollars. This will have a deep impact on the business," he said.

Trump's 50% tariffs kicked in today, posing significant challenges for India's low-margin and labour-intensive export sectors.

This follows the draft notice published by the US Customs and Border Protection (CBP) that stated that the order would come in effect from August 27.

According to the notice, the additional duties are being imposed to give effect to the President's Executive Order 14329 of August 6, 2025, titled "Addressing Threats to the United States by the Government of the Russian Federation.

The higher duties are applicable to all Indian products that are either entered for consumption in the U.S. or withdrawn from warehouses for consumption. With this, the 50 per cent tariffs on India's imports to the U.S. are now in effect.

- ANI

Share this article:

Reader Comments

S
Sarah B
As someone who loves Indian handicrafts, I'm heartbroken. These beautiful handmade products deserve global appreciation, not punitive tariffs. Hope the governments can negotiate a solution soon.
V
Vikram M
Why are we always so dependent on the US market? Time for our exporters to diversify to Europe, Middle East, and other Asian countries. This should be a wake-up call for Indian trade policy.
P
Priya S
The government needs to step in with immediate relief packages for these workers. Handicrafts and jewellery are not just industries - they're our cultural heritage and provide employment to so many families.
M
Michael C
American consumer here - I'll still buy Indian handicrafts even with the tariffs. The quality and craftsmanship are unmatched. Hope this situation gets resolved quickly for everyone's benefit.
A
Ananya R
This is going to hit small artisans the hardest. Many of them work from their homes in villages and depend entirely on these exports. Government should create domestic markets and promote local tourism to support them.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50