Trump tremors in brass city: Moradabad exporters seek new markets after 500% tariff threat by US

Meerut: Top officials of the Export Promotion Council for Handicrafts (EPCH) convened in Moradabad on Friday to strategise against what they described as an "existential threat" following US President Donald Trump's approval of a bipartisan sanctions bill. The legislation includes provisions to impose tariffs of up to 500% on countries purchasing large quantities of Russian oil and gas. For Moradabad—home to a Rs 10,000-crore brassware export industry—the implications are severe.The US remains a critical trade partner for India, accounting for 18% of the country's $825 billion in global exports, according to the RBI's 2024–25 report, while American markets alone absorb 35% of Indian handicraft exports. The sector is already under strain after a 50% tariff was imposed in Aug last year. Exporters warn that a tenfold increase would make Indian handicrafts prohibitively expensive for US consumers, effectively crippling the industry.At the emergency meeting, stakeholders said such steep trade barriers would not only stall growth but could permanently destroy traditional craftsmanship that supports crores of artisans across the country. They decided to aggressively pursue domestic markets while exploring around 40 alternative global destinations beyond the US.Rakesh Kumar, director general and chief patron of EPCH, said the focus would shift to diversified markets. "We are now aggressively trying to find 40 alternative markets in the Middle East, Latin America, Central Asia, Europe and Asian countries," he told TOI. He added that the council was also looking inward. "The Indian market has a potential of $22 billion and remains largely untapped by the handicraft industry. We have opened a cash-and-carry counter in Moradabad, which signals that we are preparing to enter domestic markets, given the uncertainties abroad."EPCH chairman Neeraj Khanna said manufacturers would adapt products to suit domestic demand. "We already manufacture brassware, but our items will now be modified for the Indian market. We will cater to high-end consumers as well as organisations such as hotels and corporates," he said, adding that the middle class also presented opportunities. "All we need is to structure the supply line."Highlighting the impact of the proposed tariffs, JP Singh, chairman of the Young Entrepreneurs Society, said exporters had managed so far despite earlier hikes. "When the tariff increased to 50%, we could still manage, and so could our American buyers, since around 20% tariffs were already in place," he said. Buyers, he added, had sought discounts and delayed payments until consignments reached US shores. "But with a 500% tariff, trade will be impossible." Singh said the Indian market held promise but would require time and support to develop. "We will need active govt participation, policy changes in the MSME sector, a better business environment and a robust supply chain to ensure smooth trade."