How Trump's tariff on India especially threatens Agra's huge exports
What's the story
US President Donald Trump has reimposed a 25% tariff on a wide range of Indian goods, putting Uttar Pradesh's export economy in jeopardy. The decision particularly affects Agra, which is famous for its footwear and handicrafts industry. Agra exports over ₹5,000 crore worth of footwear annually, with the US being one of its largest and most lucrative markets.
Industry impact
Footwear and handicraft sectors in jeopardy
The sudden imposition of tariffs has left exporters in a state of uncertainty. Prahlad Singh, an Agra-based footwear exporter, said they are already witnessing a 10% drop in revenues due to this decision. He warned that if further penalties are imposed, their business could become unsustainable. Handicraft exporters have also been rattled by the news, as Agra exports handicrafts worth around ₹1,200 crore annually to American consumers. These range from marble inlay and brassware to intricate stone products.
Broader implications
Impact on other cities and sectors
The impact of Trump's tariff decision is not limited to Agra. Uttar Pradesh is one of India's top exporting states, especially in leather, garments, handicrafts, brassware, and carpets. According to the Uttar Pradesh Export Promotion Council (UPEPC), carpet exports from UP to the US doubled from $323 million in 2020 to $718 million in 2021. Cities like Bhadohi and Moradabad are key centers for hand-knotted carpets and brassware destined for American markets.
Export statistics
US accounts for 21% of UP's total exports
Mukesh Singh, Chairman of the UP Coordination Committee, Indo-American Chamber of Commerce, said exports from Uttar Pradesh to the US account for nearly 21% of the state's total exports. This amounts to around ₹38,000 crore with handicrafts, leather goods, and carpets being amongthe top export items. He warned that Trump's decision will hit businesses hard and create serious disruptions in UP's export momentum.
Strategic perspective
Decision seems more geopolitical than economic
Singh also highlighted the strategic aspect of this decision, saying it seems more geopolitical than economic. He believes it's a tactic to force emerging economies like India into renegotiating trade terms that favor the US. "While the US seeks to project strength on global trade, collateral damage, especially to Indian MSMEs and artisans, is considerable," he added.
Cultural loss
Cultural loss if craftsmen abandon trade
The impact of Trump's tariff decision is already being felt by Agra's artisans and small exporters. Many of them run family businesses that have been passed down for generations. Prahlad Agrawal, President of the Agra Tourist Welfare Association, warned that if new orders stop coming in due to this decision, many skilled craftsmen will be forced to abandon their trade. "That would be a cultural loss," he said.