Impact of US Tariff Increase on Indian Gems and Jewellery Exports

The recent decision by US President Donald Trump to impose a 27% tariff on gems and jewellery imports from India has sent shockwaves through the industry. Experts predict a sharp decline in demand for Indian products in the US, the largest export market for Indian gems and jewellery.

In FY24, India exported $33 billion worth of gems and jewellery, with about a third, or $10 billion, going to the US. The current tariff rate of 6% is expected to jump to approximately 34%, making Indian products significantly more expensive for US buyers.

Industry Reactions and Future Outlook

Industry leaders, including Colin Shah of Kama Jewelry, express concern over the unexpected hike, which far exceeds the anticipated 10-15% increase. This could lead to a 30-50% drop in exports to the US, affecting thousands of jobs in India's labour-intensive sector.

The Gems & Jewellery Export Promotion Council (GJEPC) has highlighted the dual burden on Indian exporters and American consumers, calling for a bilateral resolution to mitigate the impact.