Bhadohi (Uttar Pradesh), Feb 8 A wave of enthusiasm has swept through Bhadohi’s carpet industry following the India-US trade deal and tariff cuts on Indian products, with exporters expecting up to a 20 per cent boost in business and describing the development as a “Diwali-like” moment for the sector.
Local exporters have credited Prime Minister Narendra Modi’s balanced diplomatic approach and sustained dialogue for the breakthrough, congratulating him along with Union Ministers Piyush Goyal and Giriraj Singh.
The US administration has reduced tariffs to 18 per cent and has also indicated the possibility of bringing them down to zero in select sectors, offering major relief to exporters.
The globally renowned carpet hub of Bhadohi, which supports lakhs of weavers and hundreds of exporters, suffered a severe blow after the US sharply raised import duties to 50 per cent, including a 25 per cent penalty, nearly bringing exports to a standstill.
Earlier, around 60 to 65 per cent of India’s total carpet exports were destined for the US market, but demand slumped sharply following the tariff hike.
However, at the beginning of 2026, following India’s diplomatic outreach, US President Donald Trump reduced the overall tariff to 18 per cent and hinted at further reductions, reviving confidence in the industry. Exporters say demand from American buyers, which had dropped drastically, is now slowly picking up.
Aslam Mehboob, Vice Chairman of the Carpet Export Promotion Council (CEPC) and a senior carpet exporter, said the tariff cut has created a highly positive business environment. “This is a very big opportunity and a historic move. When the 50 per cent tariff was imposed, it had a major impact on business because nearly 60 per cent of our exports went to the US,” he said.
“After the tariff was introduced, exports gradually declined, and by October we had fallen to around 22 per cent. The orders that were earlier put on hold, buyers had stopped or delayed placing orders, have now started immediately. We hope the coming time will be good,” Mehboob added.
He said trade momentum had already begun improving due to progress in India’s proposed trade agreement with the European Union, and the US decision has further accelerated the recovery. According to him, business worth around Rs 17,640 crore is linked to the US market alone, while exports had declined by nearly 14 per cent after the tariff hike.
Mehboob noted that direct carpet exports from Bhadohi stand at around Rs 4,500 crore, and when production from Delhi, Panipat, Haryana and other states is included, the figure rises to nearly Rs 9,000 crore. Exporters believe the tariff relief will not only lead to higher orders but also ensure more stable employment for weavers across the region.
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