Industry experts have raised serious concerns over U.S. President Donald Trump’s new 27% tariff on gems and jewellery imports, warning that it could disrupt India’s jewellery export sector, which heavily relies on the U.S. market.
The United States is a key export destination, accounting for nearly one-third of India’s $32 billion gem and jewellery exports. The new tariff structure will impact several major product categories, including cut and polished diamonds, which previously enjoyed zero import duty and will now be taxed at 27%.
Gold and platinum jewellery will face even higher duties, ranging between 32-34%, while silver jewellery could be taxed up to 40.5%. Other categories, such as lab-grown diamonds and imitation jewellery, will also see significant hikes, reaching up to 38%.
Ramit Kapur, Managing Director of GSI India, pointed out the potential blow to major export segments:
“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 of the Gem and Jewellery Council of India (GJC), highlighted how tariffs can reshape international trade dynamics:
“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.”
On the domestic front, Saurabh Gadgil, CMD of PNG Jewellers, stated that Indian retailers like his won’t feel the impact, as India doesn’t import jewellery from the U.S. However, he warned that the broader economic consequences could be global:
“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 fear that smaller Indian exporters may lose ground in the U.S. to competitors from countries not subject to the same tariffs. They are urging swift intervention from Indian policymakers to safeguard India’s leadership position in the global jewellery trade.