Rug sellers suffer as U.S. deal unravels
KASHAN, Iran — As the Trump administration works to unravel Iran’s 2015 nuclear deal with world powers, the producers of the country’s famed Persian carpets fear they will lose vital markets.
Before the U.S. withdrew from the deal and began restoring crippling sanctions earlier this year, the $425 million a year industry preserved an ancient tradition while providing much-needed income to Iranians as well as Afghan refugees, who create much of the more luxurious hand-woven pieces. Iran produces some 400 tons of carpets a year and exports 80 percent of them.
Despite the decades of mutual hostility stemming from the 1979 Islamic Revolution, the United States is one of the biggest markets for Persian rugs, accounting for more than a quarter of all exports.
But that is set to change as the U.S. imposes what it says are the toughest sanctions in history, aimed at persuading Iran to dramatically change its policies in the region, including its support for militant groups and its involvement in Syria and other conflicts.
The impact of the renewed sanctions is being felt in the grand bazaar of Kashan, an ancient city in one of Iran’s main carpet-weaving regions, known for its rich red, blue and yellow designs. On a recent day, many of the shops were closed and there were few shoppers.
The sanctions have fueled an economic crisis in Iran, where the currency has plummeted in recent months, wiping out people’s life savings and sending prices soaring. The few tourists who visit Iran cannot use foreign credit cards because of U.S. sanctions on banking, making big purchases difficult.
“I would spend more if I could pay with my credit card,” said Fabian Simon, a French tourist visiting the bazaar.
Mahmoud Morshedi, a carpet seller who has worked in the industry for more than four decades, said the production of hand-woven rugs was already suffering from the growing popularity of cheaper machinemade carpets. His company produces only around 20 handwoven carpets a year, down from 100 in the 1990s, when they filled orders from local exporters, Tehran businessmen and wealthy buyers from Gulf countries. “They are not coming anymore,” he said.
A small, 16 square foot rug can take between 18 months and four years to make, and sells for up to $6,000.
Iran is barred from exporting anything directly to the U.S., and traders can ship only through third countries if they conceal the origin of the product.