India, Aug. 29 -- Aslam Mehboob, a carpet factory owner in Uttar Pradesh's Bhadohi town, is worried about his future. The 55-year-old runs a Rs.10 crore business that exports 3,000 hand-knotted carpets every year. His biggest market: the US.

Mehboob's factory, Alam Rugs, employed 30 people just two months ago. Today, it has dwindled to 10 as the industry faces uncertainty.

"All handmade carpet manufacturers are tense due to the tariff. It has caused uncertainty in the handmade carpet sector. Consequently, carpet makers like me have cut their production up to 30%," said Mehboob.

Aslam creates woollen carpets in a variety of styles, including Tibetan, Turkish, Persian, Handloom, with prices ranging from Rs.5,000 to Rs.50,000 depending on...