Trump’s 50% tariff threatens Gujarat’s ₹29,000 cr Chaniya Choli export market

AHMEDABAD : The Trump administration’s decision to impose a 50% tariff on Indian exports has cast a shadow over Gujarat’s ₹29,000 crore chaniya choli and handicraft export market, with Surat, Kutch, Ahmedabad, and Rajkot traders fearing heavy losses ahead of Navratri.

Chaniya cholis, beadwork, applique (ornamental needlework), hand embroidery, and machine embroidery products fall under the textiles and apparels category, directly exposing them to the new tariff. Traders warn that exports could shrink by 50-70%, hitting thousands of artisan families across Kutch and Saurashtra who depend on Navratri sales.

India’s handloom exports to the US, including carpets, shawls, and bed covers, are valued at ₹4,200 crore annually, while handicrafts exports stood at ₹9,576 crore –13,860 crore in 2022-23. The US accounts for 38% of India’s handicraft exports, making the sector especially vulnerable.

From Gujarat alone, textiles and handicrafts worth ₹29,400 crore are shipped to the US annually. With the new tariff taking effect from August 27, exporters fear a sharp decline in orders.

Artisans and traders are urging the government to announce at least a 10% subsidy to cushion the blow. “We prepare for months to meet Navratri demand in the US market. If tariffs stay, we may incur losses as high as 70%,” said a leading handloom trader.

While India’s strong domestic market may absorb some of the impact in the long term, exporters warn that the immediate effect of the tariff is creating fear and uncertainty in Gujarat’s textile hubs.