WASHINGTON – President Donald Trump said today that he plans to lower tariffs on goods from India to 18%, after Indian Prime Minister Narendra Modi agreed to stop buying Russian oil, according to the Associated Press.
The move comes after months of Trump pressing India to cut its reliance on cheap Russian crude. India has taken advantage of reduced Russian oil prices as much of the world has sought to isolate Moscow for its February 2022 invasion of Ukraine.
Trump said that India would also start to reduce its import taxes on U.S. goods to zero and buy $500 billion worth of American products.
The changes are effective without delay, although the entire terms of the deal have not yet been released.
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Few industries have felt the impact of the 50% tariffs on Indian goods more acutely than rugs. For decades, India has been one of America’s primary sources for handwoven rugs — prized for their craftsmanship and design heritage.
On Aug. 27, President Trump raised the tariff on Indian goods to 50%. He implemented the additional tariff as a penalty for India’s continued importation of Russian oil, according to a White House executive order.
Rugmakers were relieved to hear today’s news.
“I am thrilled!!! We will review our current inventory costs and determine what we can do on prices,” said Cameron Capel, president of sales and marketing for Capel Rugs.
Since last August, manufacturers have dealt with the tariffs in a variety of ways, including absorbing the costs and working with partners who are able to absorb some costs, but others have had to raise prices.
Discussions in many of the rug showrooms at the recent Las Vegas Market centered around just when the tariffs would be lowered. During the show, rug manufacturers said the reduction of tariffs on all handmade rugs from India should begin to restore cost stability across the supply chain, enabling more predictable pricing and sustained investment in product development.
