Trump's Tariff Shock: Indian Jewellery Sector Faces Turmoil

In a move that has sent ripples across the global trade landscape, US President Donald Trump announced a 25 percent tariff on Indian imports, posing a significant challenge to India's gem and jewellery industry. The industry, a substantial contributor to India's export economy, is bracing for the impact, according to industry leaders in a discussion with ANI.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, expressed grave concerns about the potential fallout, especially after experiencing the ramifications of a previous 10 percent tariff. Rokde warned that the new tariff could lead to over one lakh job losses if history is any guide. "The increase from 10 percent to 25 percent is disheartening and set to take effect on August 1. The repercussions could be dire for our industry," he stated.

Despite the challenges, Rokde remains optimistic about finding alternative global markets, a strategy that has previously helped India navigate trade barriers. India's export economy sent jewellery worth USD 9.9 billion to the US last year, underscoring the stakes involved. Meanwhile, industry figures like Colin Shah of Kama Jewellery echoed concerns over prolonged geopolitical strife affecting the jewellery sector. However, hopes are pinned on the sixth round of India-US Bilateral Trade Agreement talks in August for potential negotiation and resolution.

(With inputs from agencies.)