The U.S. rug industry is facing significant strain following a 50% tariff increase on Indian imports. For decades, India has been a primary source of handwoven rugs, celebrated for their craftsmanship and design heritage. Now, with import costs effectively doubling, manufacturers and distributors must navigate tough decisions: absorb the added expense, pass it onto consumers, or rethink their supply chains entirely.
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According to the Global Trade Research Initiative, imports of Indian goods to the U.S. fell 37.5% between May and September 2025, dropping from $8.8 billion to $5.5 billion in dollar value. Companies have responded in various ways. Some, like Capel Rugs, have absorbed much of the cost, only modestly raising prices, while others, such as Jaunty Rugs, have added temporary surcharges. For high-end, hand-loomed products, the tariffs are particularly challenging, as there are no alternative supply sources.
Rising costs are already affecting sales. Some clients are limiting purchases to specific projects rather than stocking inventory, and price sensitivity is increasing across the market. However, industry leaders remain committed to maintaining quality and ethical sourcing. Harounian Rugs International emphasises the value of artisan-made rugs, noting that each piece reflects the skill and heritage of its makers.
Looking ahead, some see opportunity in adversity. Companies are exploring new sourcing strategies, product redesigns, and innovative collaborations to protect value and sustain the diversity and craftsmanship of the industry. While tariffs are reshaping the market, India remains an essential partner, and a balanced trade framework could provide a sustainable foundation for long-term growth.
Source: www.homeaccentstoday.com
