Has the declining trend in export business being a major cause for upsetting small handicraft units?

I'm not sure what you mean by small handicraft units.

Moreinfo is needed.

Ken Reed Sr

Cant say about handicraft units but a trade war is brewing between the world’s largest debtor and the world’s largest lender – and the ramifications could prove very costly. Over the weekend, in a very quiet and contrite manner, the US government imposed a 35% additional tariff on Chinese made automobile tires.

The Chinese, since finding this out via a news source rather than an official communication, have accused the US of protectionist policies and referenced the manner in which the tariff was imposed (in the dark of night) and the manner in which it was disclosed to them (via a Reuters report) to prove this point.

The Obama is under immense pressure from internal lobbyists for the Automobile parts industry, which claim that 5,000 jobs have been lost so far as a direct result of the mass influx of cheaper Chinese made tires.

Coupled with the declining popularity of Obama’s policies and administration as a whole, the pressure caused them to make a serious mistake in enacting this policy – and I have to agree with the Chinese that the manner in which it was enacted and disclosed was irresponsible.

For decades, U.S. goods dominated the world markets because of perceived quality and as status symbols.  Once Taiwan, Japan and mainland China's quality met or surpassed ours, simultaneously with the decline of the value of the U.S. dollar, American goods could not compete, even in our own country. The current value of the Euro over ours (145%) and the trade balance deficit with China has caused the dollar to be very low in value; that is, foreigners can buy much more of our products with their currency than ever before.  

     Our economy will not turn around soon, labor costs in the U.S. will remain low, and foreign companies will find it cheap to buy our goods.  Recently, travel to U.S., and the shopping sprees tourists are engaged in has increased. Problem is, what they are buying here is made in other countries.

      So, my guess is that, because exchange rates improved their purchasing power, there will be more sales in the U.S. to  foreigners. If you are producing desirable handicrafts at, say, close to minimum wage, and can cheaply transport your products to the consumer at the point of sale, you can profit in our economic situation and employ U.S. citizens.

      A couple of provisos:  Chinese  workers have marvelled at the junk that they produce and sell to the U.S. Much of the deficit between China and U.S. occurs because we buy useless junk, frivolous gadgets, and cheaply made products.  Look at all the toys, tools, clothing we buy from "3rd world" countries.  We now have no industries in the U.S., including steel and cars, because we are asleep at the trade wheel. Just because the dollar is worth less, people will not use their good money to buy OUR junk. If you produce "handcrafts", I suggest you concentrate on items that the customers need, of good quality, relatively inexpensive to produce, is unique, can get to the buyers cheaply, and can still make a profit.

 I hope my comments have some value to you.  Otherwise, my insights are another   American product which didn't satisfy a need, and the customer is not buying it.