Weavers in Varanasi struggle as Trump tariffs choke Banarasi saree sales abroad
The hefty tariff imposed by Trump administration on Indian goods has severely impacted the Banarasi saree and silk sector, leading to a decline in demand and halted export orders. This trend is posing a threat to the livelihoods of many workers dependent on this trade.
EVER since US President Donald Trump imposed an additional 25% tariff on Indian goods, raising the total duty to 50%, several industries in the country have been hit hard, losing their competitive edge in the American market as Indian products became significantly costlier.
Among the severely impacted, the world-famous Banarasi saree and silk industry is seeing a steep decline in demand for its goods. Traders say that the steep tariffs have led to finished goods worth lakhs being returned, while fresh export orders have come to a halt.
This is not only affecting the business but also posing a grave threat to thousands of workers who are solely dependent on the trade to earn a source of livelihood, reported PTI.
Traders protest against the tariffs
Kashi Vyapar Mandal President Ajit Singh Bagga told The Statesman that the traders of Kashi in Varanasi protested against the US tariffs on Indian goods by burning posters near Azad Park in Lahurabir on August 27, the day tariffs came into effect.
He said that Banarasi sarees which once enjoyed strong demand in America, may see a decline in online sales following the steep 50% tariff hike on most imported goods. He said that customers may hesitate to buy the traditional sarees due to the increase in prices.
A Varanasi-based saree trader explained that until now, customers booked Banarasi sarees online, and the goods were shipped via couriers, on which normal taxes were applicable. “But now, after the implementation of 50 percent tariff, it is not clear how much duty will increase on various goods. However, it is certain to have an impact,” the trader said.
Meanwhile, Federation of All India Vyapar Mandal’s Senior National Vice President Prem Mishra told the news agency that sarees worth over ₹3000 crore are exported from all over India, which includes many regions of the country such as Madras, Surat, and Varanasi.
“Orders are being cancelled continuously. Traders will face a lot of problems in exporting the goods,” he added.
Trump tariffs on Indian goods
US President Donald Trump signed an executive order imposing an additional 25% duty on Indian imports, effectively raising the total levy to 50% on several categories, including textiles and apparel.
Among the most affected sectors, textile remained on the top, with duties on knitted apparel reaching 63.9% and woven apparel at 60.3%. Industry experts warn that the steep tariffs could slash India’s textile and apparel exports to the US by as much as 40–50%, severely affecting the country’s $10.3 billion export market.
America has been India’s largest export destination for textiles, with India ranking as the third-largest supplier after China and Vietnam. However, the steep tariff burden will make India lose it competitiveness in the American market. By comparison, duties on products from China, Vietnam, Indonesia and Japan stand significantly lower at 30%, 20%, 19% and 15%, respectively, a Mint report said earlier.
