Trump's 27% tariff on Indian Gems & Jewellery to disrupt Indian industry

ANI April 4, 2025 207 views

President Trump's new 27% tariff on Indian gems and jewellery threatens to significantly disrupt India's export ecosystem. The policy could impact nearly one-third of India's $32 billion export market, with duties potentially ranging from 27% to 40.5% across different product categories. Industry experts warn that while high-end jewellery might survive, smaller exporters could face substantial challenges in maintaining their competitive edge. The tariffs represent more than an economic measure, potentially reshaping global trade relationships and forcing Indian manufacturers to rapidly adapt their strategies.

"Tariffs are more than economic measures; they redefine the dynamics of trade partnerships" - Rajesh Rokde, GJC Chairman
New Delhi, April 4: US President Donald Trump's 27 pc tariff on gems and jewellery industry will cause a disruption in the industry as US is one of the major exporting destinations for India, says Industry experts.

Key Points

1

Trump's tariffs could dramatically increase duties on Indian jewellery exports

2

US market represents one-third of India's gem trade

3

High-value studded jewellery might remain resilient despite challenges

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Small Indian exporters risk losing global market share

The US accounts for nearly one-third of India's USD 32 billion gem and jewellery exports. With the new tariffs, products like cut and polished diamonds, which previously faced no duty, will now attract 27 per cent tariff.

Gold and platinum jewellery will face 32-34 per cent duty, while silver jewellery could be taxed as high as 40.5 per cent. Other items such as lab-grown diamonds and imitation jewellery will also see significant hikes, going up to 38 per cent.

According to Ramit Kapur, Managing Director of GSI India, the hike will hurt major categories like cut and polished diamonds and studded gold jewellery, which constitute a large share of exports.

However, he added that "Despite the challenges, high-value studded jewellery will remain resilient, as discerning US buyers prioritize quality, craftsmanship, and certification--areas where India excels. However, pricing and competitiveness will be pressured, requiring Indian manufacturers to adapt. Demand for studded jewellery continues to be robust, but this tariff change calls for quick action by policymakers as well as industry captains to ensure India continues to lead the global jewellery market".

Rajesh Rokde, Chairman, Gem and Jewellery Council of India (GJC) said "Tariffs are more than economic measures; they redefine the dynamics of trade partnerships. The gem and jewellery sector, with its reliance on delicate global collaborations, faces challenges that call for strategic foresight. It's not just about navigating the cost but understanding how these shifts recalibrate the competitive landscape globally,."

However, Saurabh Gadgil, CMD of PNG Jewellers, said domestic businesses like his won't be impacted as India does not import jewellery from the US. He added that the tariff hike may also hurt the US economy, as it imports many goods from Asia that will now become costlier, potentially leading to inflation and slower growth.

He said, "More importantly, this policy will affect the entire world, and not just the United States. Thus, reciprocal reactions are awaited and Indian players need to see how this unfolds in the days to come"

Experts also warn that Indian exporters, especially small businesses, may lose share in US markets to other countries not facing these duties. They urge quick action from Indian policymakers to protect the country's leadership in the global gems and jewellery trade.

Reader Comments

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Priya K.
This is really concerning for our jewelry artisans. Many small businesses depend on US exports. Hope our government negotiates better terms 🤞
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Rahul S.
While I understand the industry's concerns, maybe this is an opportunity to focus more on domestic markets and other export destinations? India's middle class is growing rapidly.
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Ananya P.
The craftsmanship of Indian jewelry is unmatched! 💎 US buyers will still prefer quality over price. But yes, the industry needs to adapt quickly to these changes.
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Vikram J.
Respectfully, the article could have explored alternative markets more. India should strengthen trade with EU and Middle East to reduce US dependence. The tariffs seem excessive but we need long-term solutions.
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Sanjay M.
My uncle runs a small jewelry workshop in Surat. These tariffs could put him out of business. Really hoping for some government support or policy changes soon.
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Neha R.
Interesting how this might backfire on US economy too. Global trade is so interconnected! Maybe this will lead to more reasonable negotiations eventually.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Trump Tariffs Indian Gems Exports US Trade Policy Jewellery Industry International Trade
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