With the US tariffs expected to hit Uttar Pradesh’s micro, small, and medium enterprises (MSMEs), industry leaders have warned that the move could cripple brassware, carpet, leather, and textile exports unless the government cushions the blow with tax relief and helps to open alternate export markets.
Moradabad Brass Factory Association Chairman Azam Ansari said the brass and metal trade, once worth Rs 2,000 crore, has shrunk by half since Covid. “We were already struggling against cheap Chinese competition—selling at Rs 100 while China sells at Rs 25. Now tariffs will make us costlier even further,” he said, urging the Centre to slash the 20 per cent duty on foreign currency, draw weight to 4 per cent for export-related benefits, and extend other fiscal measures.
In Bhadohi, All India Carpet Manufacturers Association’s Honorary Secretary Tanveer Hussain said the Rs 8,000 crore carpet industry, with 60 per cent of its exports headed to the US, faces a direct hit. “First the recession, now tariffs. The government must urgently look to Europe, Canada, Brazil, Russia, Africa, and the Middle East market while granting 25–30 per cent tax relief to keep us afloat,” he said.
In Kanpur, Council for Leather Export Chairman Asad Iraqi warned that India exports Rs 10,000 crore worth of leather to the US, with Kanpur and Unnao contributing Rs 2,000 crore. “This will disrupt markets. With a UK free trade pact already in place, the government should expand such deals and allow duty-free licenses alongside tax breaks,” he said.
In Mubarakpur, Azamgarh, a hub for silk weaving, trader Iftikhar Munib said panic has spread among exporters. “Last year, exports were to the tune of Rs 85–90 crore. The US is a huge textile market, and tariffs could devastate us. Relief measures and new market options are the need of the hour,” he said.
Indian Industries Association Executive Director D S Verma said garments, leather, and handicrafts would be hit hardest. “We’ve suggested to the Centre that banks extend repayment periods for loans, while the government must offer tax relief and guide industries toward alternate markets,” he noted.