Rise in US tariff to pull down gem and jewellery exports by 75%
The overall exports of gem and jewellery were down 5 per cent in last four months at $6.48 billion against $6.85 billion logged in same period last year
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SHAILESH ANDRADE
The recent increase in US import tariffs to 50 per cent on gem and jewellery products from India has led to a significant disruption in bilateral trade. The duty on export to the US will increase from 10 per cent to 25 per cent from Friday. From August 27, the US will double the levy to 50 per cent on various gem and jewellery commodities, including cut and polished diamonds, lab-grown diamonds, gold, silver, platinum and imitation jewellery.
The overall exports of gem and jewellery were down 5 per cent in last four months at $6.48 billion against $6.85 billion logged in same period last year. Similarly, imports were down 2 per cent at $5.34 billion ($5.47 billion) in the same period.
With the fresh duty coming to effect, the industry estimates gem and jewellery exports to decline 75 per cent in this fiscal.
Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council, said the additional levy of 25 per cent over and above a similar tariff on Indian gold jewellery exports will be a big blow to the sector.
“A cumulative 50 per cent tariff threatens widespread job losses, destabilises local economies and risks eroding a rich cultural heritage,” he said.
job loss
Colin Shah, MD, Kama Jewelry, said early estimates predict there will be job loss for 1.25 lakh artisans and workers over the next 4–5 months, largely in Surat and Mumbai, who are engaged in diamond cutting and polishing and jewellery manufacturing.
Unless a trade agreement is negotiated, these punitive tariffs will continue to severely impact gem and jewellery sector, with far-reaching effects on exports, employment and global competitiveness, he said.
There is also a dire need for Free Trade Agreements with other developing markets, especially the BRICS, said Shah.
Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions, said Union Commerce Minister Piyush Goyal has stressed that the government will take all necessary steps to safeguard national interests, engaging closely with stakeholders, including exporters, MSMEs and industry bodies, to assess the situation thoroughly.
Meanwhile, he said the industry has urged the government for urgent fiscal and policy support, including affordable credit at lower interest rates, credit subsidies, export-linked incentive schemes akin to PLI, tax remission, and marketing aid to sustain competitiveness under the new tariffs.
Aksha Kamboj, Vice-President, India Bullion & Jewellers Association, said the industry has collectively appealed for strategic support, including policy-level interventions, faster export clearances and expanded trade dialogues to safeguard our competitiveness.
Published on August 7, 2025
