Archive · 16 Jan 2026

India's wool economy faces twin threats from tariffs

India's wool economy faces twin threats from tariffs

India's wool economy has faced two big challenges.

First, in 1991, India opened up to global trade, which hurt the wool industry because cheaper imports came in.

Many people who worked with wool lost their jobs, and the price of wool dropped a lot.

Now, in 2025, the US has started putting higher taxes on some Indian goods, which makes it harder for Indian wool producers to sell there.

This affects the people who raise sheep and make wool.

The story shows how changes in trade rules can hurt small businesses and farmers, even if they were not the main focus of those rules.

It's important for India to support its wool industry and the people who work in it.

Sources