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flag Iran's handmade carpet exports plummeted from $2B to $40M since 2018 due to U.S. sanctions, economic turmoil, and global competition.

flag Iran’s handmade carpet industry, a centuries-old cultural treasure and major non-oil export, has declined sharply, with annual exports dropping from over $2 billion in the 1990s to around $40 million by 2025. flag The collapse stems largely from U.S. sanctions reimposed in 2018, which cut off access to the American market, once the industry’s largest buyer. flag Economic instability, rising production costs, declining tourism, and competition from cheaper machine-made rugs from India, China, and other countries have further weakened the sector. flag Domestic demand has also fallen, with many families unable to afford traditional carpets due to inflation and currency devaluation. flag Over two million people, including many rural women, depend on weaving for income. flag While officials and experts advocate for modernized designs, improved branding, and better export policies, ongoing geopolitical tensions and limited government support threaten the craft’s survival.

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