US Tariff Threatens India's Gem and Jewellery Industry
The US has imposed a 50% tariff on gems and jewellery imports from India, threatening the industry’s global competitiveness and jobs, particularly affecting cities like Surat, Mumbai, and Jaipur. Industry leaders urge the Indian government to provide immediate support and adjust its trade strategy to mitigate the impact.
- Country:
- India
The United States' decision to levy a 50% tariff on Indian gems and jewellery imports has dealt a significant blow to India's export-focused industry. Experts warn that this move could jeopardize jobs, reduce global competitiveness, and strain bilateral trade relations. Calls for urgent government intervention are growing.
Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council, highlighted the damaging effects of the tariff, emphasizing its potential to decimate a crucial market for Indian exports. Exports to the US from April to July 2025 had already seen a 32% decline year-on-year, and the new tariff could deepen this fall by 75%.
The livelihoods of approximately 1.7 lakh workers are at risk, according to industry leaders. They advocate for targeted government relief measures, such as duty drawbacks and financial support, to mitigate the devastating impact. The abrupt tariff escalation poses a macroeconomic threat, urging a strategic recalibration to shield this vital sector.
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