Steep 27% US tariff on Indian gems and jewellery raises fears of export slump and job losses
The Indian gems and jewellery industry is bracing for a major setback following US President Donald Trump’s announcement of a 27% tariff on imports from India — a sharp rise from the current 6% duty. With the US being the largest export market for Indian jewellers, the industry fears a drop in demand, price hikes, and potential job losses, especially in labour-intensive sectors like diamond cutting, polishing, and handcrafted jewellery, reported timesofindia.indiatimes.com.
US tariff hike may slash Indian jewellery exports by up to 50%
India exported nearly $33 billion worth of gems and jewellery in FY24, of which approximately $10 billion—nearly a third—was destined for the US. The sudden spike in tariffs could increase the effective duty on these exports to around 34%, threatening the industry’s price competitiveness.
“We were preparing for a 10–15% tariff hike—not 27%,” said Colin Shah, Founder & MD of Kama Jewelry. “This increase could price Indian products out of reach for US buyers, hitting demand and risking job losses in the sector.”
The Gems & Jewellery Export Promotion Council (GJEPC) also raised concerns, stating the move would be burdensome for both Indian exporters and American consumers, and called for urgent intervention through bilateral trade talks to mitigate damage.
Industry leaders warn that unless India secures favourable trade terms through negotiations with the US, exports to the country could fall between 30% to 50%, severely impacting revenues and employment in one of India’s most labour-intensive industries.
The Trump administration’s decision is part of a broader move to impose reciprocal tariffs on several countries. However, Indian jewellers were blindsided by the scale of the hike. The sector, already facing global headwinds and rising competition, sees this as a major blow.
With the festive and wedding seasons approaching, the industry fears this could disrupt global supply chains and weaken India’s position as a leading exporter of high-value, handcrafted jewellery.
