US Tariff Tsunami: Indian Gem and Jewellery Exports Bracing for Impact

President Trump's new 27% tariff on gems and jewellery could severely impact Indian exports to the US, a key market. Industry leaders argue that while high-value items may withstand the hike, Indian policymakers need urgent strategies to retain global competitive advantage, as smaller businesses may lose market share.

President Donald Trump's new 27% tariff on the gem and jewellery industry is expected to disrupt trade significantly, given the United States is a major export destination for India. Industry experts highlight that the US accounts for nearly a third of India's $32 billion gem and jewellery exports. Previously tariff-free products like cut and polished diamonds now face a substantial 27% duty.

Gold and platinum jewellery will see duties between 32-34%, and silver jewellery could be taxed up to 40.5%. Other items such as lab-grown diamonds and imitation jewellery also face hikes, reaching 38%. Ramit Kapur, Managing Director of GSI India, emphasized the impact on categories like cut and polished diamonds, which are crucial to exports.

Yet, high-value studded jewellery may prove resilient, as US buyers prioritize quality and craftsmanship—areas where India excels. However, experts like Rajesh Rokde and Saurabh Gadgil urge quick adaptation and strategic foresight, as the tariffs are not just economic measures but redefine global trade dynamics.

(With inputs from agencies.)