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U.S. 50% tariff threatens handicrafts in Indian-administered Kashmir

By Muheet Ul Islam

Manzoor Ahmad Sofi, a carpet weaver, rolls a small carpet and places it in a corner of the living room in his two-story house in Wantpora, Srinagar, in Indian-administered Kashmir.

The veteran artisan, in the profession for nearly 50 years, looks worried for the first time as he thinks about the Kashmir handicrafts industry that was once the backbone of the region's economy.

Veteran carpet weaver Manzoor Ahmad Sofi at his home in Srinagar, Indian-administered Kashmir. He has been in the trade for nearly 50 years but fears new U.S. tariffs will affect the centuries-old handicrafts industry. August 5, 2025.
Veteran carpet weaver Manzoor Ahmad Sofi at his home in Srinagar, Indian-administered Kashmir. He has been in the trade for nearly 50 years but fears new U.S. tariffs will affect the centuries-old handicrafts industry. August 5, 2025.

Veteran carpet weaver Manzoor Ahmad Sofi at his home in Srinagar, Indian-administered Kashmir. He has been in the trade for nearly 50 years but fears new U.S. tariffs will affect the centuries-old handicrafts industry. August 5, 2025.

"The Kashmir handicrafts industry was brought down gradually over the years, forcing artisans like me to quit and look for other options," Sofi told CGTN. "Political unrest and machine-made goods sold in the name of Kashmir handicrafts marked the beginning of its end," he said after a brief pause, adding that only a few artisans chose to continue the centuries-old legacy and cultural heritage.

"Artisans who stayed in the profession turned to overseas markets to survive and support their families. Exporting handmade goods such as pashmina shawls, carpets, papier-mâché and wood-carving items from the conflict-torn region gave them some relief, and their condition had only begun to improve after a long struggle.

However, this changed when U.S. President Donald Trump announced a 50 percent tariff on Indian products. The move, meant to pressure India to cut Russian oil imports, struck another blow to the centuries-old craft.

"I don't believe this fragile industry will survive if heavy taxes are imposed on its products," Sofı said. "I'm worried the carpets I have woven may not find buyers easily, and ultimately this industry will collapse," he added.

Kashmir's handicrafts were introduced to the valley by Persian Sufi saint Mir Sayyid Ali Hamadani with the advent of Islam in the region in the 14th century, laying a strong foundation for its rich heritage, which today generates about $138 million in annual exports, 25 percent of which go to the U.S. market.

Tariq Dar, a pashmina shawl exporter and manufacturer who runs the brand Pashmkaar Kashmir, sells a large quantity of costly pashmina shawls to the U.S. He says the American fondness for handmade goods makes it a big market for traders like him.

An artisan works on an unfinished shawl at the workshop of Pashmkaar Kashmir, a leading manufacturer and exporter of pashmina shawls, in the Hazratbal area of Srinagar, Indian-administered Kashmir. August 4, 2025.
An artisan works on an unfinished shawl at the workshop of Pashmkaar Kashmir, a leading manufacturer and exporter of pashmina shawls, in the Hazratbal area of Srinagar, Indian-administered Kashmir. August 4, 2025.

An artisan works on an unfinished shawl at the workshop of Pashmkaar Kashmir, a leading manufacturer and exporter of pashmina shawls, in the Hazratbal area of Srinagar, Indian-administered Kashmir. August 4, 2025.

"The USA is a big market. People there love to purchase handmade goods. But if our clients are made to pay a 50 percent tariff instead of the earlier 6 percent, it won't be good for global business," Dar told CGTN. "The new taxes will make it harder for U.S. consumers to buy our products, and in the end, it is the artisans who will suffer," he said, adding the move would encourage the artisans to "discontinue the centuries-old practice."

Dar said he believes Trump will change his decision in the coming days, as Americans value the crafts.

Maqbool Jan, an award-winning papier-mâché artist, suggests that global trade bodies and governments should formulate policies to benefit and promote crafts on the verge of extinction.

Handmade papier-mâché goods are largely exported to European and American markets. Artisans of this centuries-old craft say global trade bodies and governments should exempt handicrafts from taxes. August 7, 2025.
Handmade papier-mâché goods are largely exported to European and American markets. Artisans of this centuries-old craft say global trade bodies and governments should exempt handicrafts from taxes. August 7, 2025.

Handmade papier-mâché goods are largely exported to European and American markets. Artisans of this centuries-old craft say global trade bodies and governments should exempt handicrafts from taxes. August 7, 2025.

"The imposition of additional taxes will disturb the lives of people who depend on the global market. One must understand that buying expensive goods will be impossible for common people, especially when inflation is rising continuously," Jan said. "This will increase unemployment not only in a small place like Kashmir but across the world. I don't understand from where customers will arrange extra money to buy these items," he added.

Jan suggests that all handicraft items imported and exported worldwide should be tax-free. He says this step will not only boost the sector but also generate employment for thousands of men and women.

"Tax-free handmade goods will become cheaper, and as a result, more people will purchase them, benefiting the artisans," Jan told CGTN. "This will not only save crafts on the verge of extinction but also help eradicate unemployment, as youth will once again join these centuries-old professions," he concluded.

(All photos by CGTN's Wasim Nabi)

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