Nepali NYC Boutique Gets Small Tariff Reprieve

By Ada Carlston  While many small US businesses are trying to navigate a drastic change in trade policy, New York City's Karma Nepal Crafts is one of the exceptions. This small boutique in Greenwich Village imports colorful jewelry and skirts from Nepal, and it is the only physical location of the woman-owned family business. All the items are handmade in India and Nepal. As many importers of goods made in China and India reel from steep tariffs up to 50% imposed by US President Donald Trump, Nepal's tariff rate was set at a comparatively mild 10%. This alone offers businesses like Karma Nepal Crafts some relief.

“It’s a family business, so we are doing well, everything is handmade in Nepal,” said Tal, a shopkeeper who didn't provide her last name.. She declined to say exactly what the process of importing looks like for the business.

According to the Nepali Times, “Nepal has a trade deficit with the US of Rs7.64 billion, which is probably why Trump has not increased tariffs on Nepal’s exports to more than 10%.” One of Nepal’s main exports to the U.S. is garments, but 64% of Nepal’s imports are from India. This creates an interwoven relationship between the three countries.

A survey conducted by India SME Forum found that 57% of participants said they were seeking other routes for exports to avoid these steep costs to their businesses. “So every supplier, be it medium or small or large, is now relooking at the inquiries they received earlier, which they have not attended to because they had a better offer (in U.S. markets),” said the president of India SME Forum Vinod Kumar.

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