The United States’ imposition of 27% retaliatory tariffs on Indian goods has dealt a significant blow to India’s gems and jewellery exports, according to the Gem and Jewellery Export Promotion Council (GJEPC). The move, part of the Trump administration’s strategy to reduce trade deficits and boost domestic manufacturing, is expected to disrupt India’s $10 billion export volume to the US.

GJEPC emphasized the urgent need for the Indian government to expedite a bilateral trade agreement with the US to safeguard long-term sectoral interests. “The new tariffs could reshape global supply chains and severely impact India’s position in the US market,” the council warned.

The US currently imports $11.58 billion worth of gems and jewellery from India, while exports to India stand at $5.31 billion, making the bilateral trade in the sector worth $16.89 billion. The new duties could raise tariffs from zero to 20% on loose diamonds and from 5.5–7% on gold jewellery.

Kama Jewelry MD Colin Shah called the tariffs a “big setback” and highlighted that nearly 30% of India’s jewellery exports head to the US. “The hike in import duties will burden Indian exporters and American consumers alike,” he added.

GJEPC also pointed out that India imposes a 20% import duty on gold, silver, and platinum jewellery from the US. Rationalising import duties and ensuring balanced trade are necessary to prevent retaliatory measures, it said.

PNG Jewellers CMD Saurabh Gadgil noted that the impact on domestic jewellery businesses may be limited since India does not import such products from the US. However, rising costs of Asian imports could fuel inflation in the US, undermining the very economic goals the tariffs aim to achieve.

The United States’ imposition of 27% retaliatory tariffs on Indian goods has dealt a significant blow to India’s gems and jewellery exports, according to the Gem and Jewellery Export Promotion Council (GJEPC). The move, part of the Trump administration’s strategy to reduce trade deficits and boost domestic manufacturing, is expected to disrupt India’s $10 billion export volume to the US.

GJEPC emphasized the urgent need for the Indian government to expedite a bilateral trade agreement with the US to safeguard long-term sectoral interests. “The new tariffs could reshape global supply chains and severely impact India’s position in the US market,” the council warned.

The US currently imports $11.58 billion worth of gems and jewellery from India, while exports to India stand at $5.31 billion, making the bilateral trade in the sector worth $16.89 billion. The new duties could raise tariffs from zero to 20% on loose diamonds and from 5.5–7% on gold jewellery.

Kama Jewelry MD Colin Shah called the tariffs a “big setback” and highlighted that nearly 30% of India’s jewellery exports head to the US. “The hike in import duties will burden Indian exporters and American consumers alike,” he added.

GJEPC also pointed out that India imposes a 20% import duty on gold, silver, and platinum jewellery from the US. Rationalising import duties and ensuring balanced trade are necessary to prevent retaliatory measures, it said.

PNG Jewellers CMD Saurabh Gadgil noted that the impact on domestic jewellery businesses may be limited since India does not import such products from the US. However, rising costs of Asian imports could fuel inflation in the US, undermining the very economic goals the tariffs aim to achieve.