Sambhal handicraft traders cheer as US cuts import tariffs to 18%

US tariff reduction on Indian goods from 50% to 18% revives Sambhal's handicraft sector. Exporters of horn-based products, who faced frozen orders, now express optimism for renewed global demand and business growth.

Tariff Cut Revives Sambhal's Handicraft Sector

A sharp reduction in US import tariffs has sparked relief and renewed optimism among handicraft traders in Sambhal, Uttar Pradesh, reviving hopes of renewed exports and global demand for the town's distinctive artisanal products. The move, which cuts tariffs on Indian-origin goods from 50 per cent to 18 per cent, is being seen as a turning point for exporters whose businesses were hit hard by the earlier hike.

Sambhal, known for its horn-based handicrafts and home decor items, has long been part of the global artisanal supply chain. Traders here say the earlier tariff increase imposed significant financial pressure, leading to frozen orders, delayed shipments, and strained relationships with overseas buyers. With the revised rate now in effect, exporters believe international trade will regain momentum.

Traders Express Relief and Optimism

Mehndi Hasan, a handicraft trader from Sambhal, said the tariff cut has restored confidence across the sector. Hasan's business manufactures a range of horn-based products, including mugs, cutlery, bowls, trays, spoons, and buttons, which are exported to the United States, the United Kingdom, Germany, France, Italy, and several other countries. According to him, when tariffs were raised to 50 per cent, buyers put orders on hold due to the steep tax burden. "Now that the tariff has been reduced to 18 per cent, we are hopeful that orders will increase and business will grow," he said.

Another exporter, Sohail Parvez, echoed similar sentiments, pointing out that many large orders had remained suspended in anticipation of a tariff rollback. "Customers were waiting, and so were we," Parvez said, adding,"With the tariff reduced, we expect those pending orders to be cleared. This will have a positive effect on the market." Parvez added that while the immediate impact will be felt in US trade, his company has also secured deals with European countries, which could further strengthen exports of houseware, home decor, and gift items.

For Sambhal's traders, affordability is key. Tahir Salmani, another handicraft exporter, explained how high tariffs had earlier disrupted business. "If a product worth Rs 100 here faced a 50 per cent tariff, it would cost Rs 150 for buyers abroad," he said, adding, "At that price, customers found it difficult to purchase. With an 18 per cent tariff, the products become more affordable. Goods that were stuck will now be shipped, and new orders will come in."

Broader India-US Trade Agreement Framework

The tariff reduction follows the announcement of a framework for an Interim Agreement on reciprocal and mutually beneficial trade between India and the United States. The agreement is a step toward advancing broader US-India Bilateral Trade Agreement negotiations launched by Prime Minister Narendra Modi and US President Donald Trump in February 2025.

According to a joint statement released by the White House and India's Commerce Ministry, the US will apply a reciprocal tariff rate of 18 per cent on a wide range of Indian goods, including textiles, apparel, leather, footwear, plastic and rubber products, organic chemicals, home decor, artisanal items, and certain machinery.

Beyond handicrafts, the interim agreement outlines broader trade concessions. The United States will remove tariffs on certain aircraft and aircraft parts from India, while India will eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products. India has also indicated plans to purchase USD 500 billion worth of US energy products, aircraft, precious metals, technology products, and coking coal over the next five years.

Union Commerce Minister Piyush Goyal welcomed the framework, calling it a gateway to a USD 30 trillion market for Indian exporters. In an X post, Goyal stated that an agreement would significantly boost exports and create lakhs of new jobs, especially for women and youth. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)