Bhadohi (Uttar Pradesh), Feb 8 (NationPress) A surge of excitement has engulfed Bhadohi's carpet sector as a result of the recent India-US trade agreement and subsequent reductions in tariffs on Indian goods, with exporters anticipating a potential business increase of up to 20 percent. This development has been likened to a “Diwali-like” celebration within the industry.

Local exporters attribute this significant breakthrough to Prime Minister Narendra Modi’s effective diplomatic strategy and ongoing discussions, expressing their gratitude towards him, along with Union Ministers Piyush Goyal and Giriraj Singh.

The US government has decreased tariffs to 18 percent and has even hinted at the possibility of reducing them to zero in specific sectors, offering substantial relief to exporters.

As a global carpet manufacturing hub, Bhadohi supports millions of weavers and numerous exporters. However, the area faced a harsh setback when the US drastically raised import duties to 50 percent, which included a 25 percent penalty, nearly halting exports.

Previously, around 60 to 65 percent of India's carpet exports were directed towards the US market, but demand plummeted sharply after the tariff hike.

Yet, in early 2026, following India's diplomatic efforts, US President Donald Trump lowered the overall tariff to 18 percent and suggested further cuts, reigniting optimism in the sector. Exporters report that the demand from American consumers, which had significantly dwindled, is gradually recovering.

Aslam Mehboob, Vice Chairman of the Carpet Export Promotion Council (CEPC) and a senior exporter, stated that the tariff reduction has fostered a remarkably positive business environment. “This is a monumental opportunity and a historic step. The imposition of the 50 percent tariff had a profound effect on our operations since nearly 60 percent of our exports were destined for the US,” he noted.

“After the tariff was enacted, exports saw a gradual decline, and by October, we had dropped to approximately 22 percent. Orders that were previously on hold or delayed by buyers have now resumed promptly. We are optimistic about the future,” Mehboob added.

He also pointed out that trade activity had begun to improve due to progress in India’s proposed trade agreement with the European Union. The recent US decision has further bolstered this recovery. According to his insights, business worth around Rs 17,640 crore is linked directly to the US market alone, while exports had witnessed a near 14 percent decline following the tariff increase.

Mehboob highlighted that direct carpet exports from Bhadohi stand at approximately Rs 4,500 crore, and when factoring in production from Delhi, Panipat, Haryana, and other regions, this figure escalates to nearly Rs 9,000 crore. Exporters are confident that the tariff relief will not only lead to an influx of orders but also promote more stable employment opportunities for weavers throughout the region.