India's Gem Industry Faces U.S. Tariff Challenges Amid Global Trade Expansion
India's gems and jewellery sector voices concern over a new 25% U.S. tariff, predicting price hikes and job losses. Yet, India's recent FTAs with the UK, Australia, and the UAE may cushion the impact, potentially affecting U.S. consumers more. Industry leaders remain cautiously optimistic about future trade routes.
- Country:
- India
The Indian Gems and Jewellery sector is facing significant challenges as the United States imposes a 25% tariff on imports from India, a move announced by former U.S. President Donald Trump on his Truth Social platform. Industry leaders warn of immediate disruptions, including potential job losses and higher consumer prices in the U.S.
However, these industry concerns are tempered by India's strategic trade maneuvers, such as newly inked Free Trade Agreements (FTAs) with the United Kingdom, Australia, and the United Arab Emirates. Experts believe these agreements will help mitigate the tariff's impacts on India's economy while posing long-term consequences for the U.S. market.
Rajesh Rokde, Chairman of the All India Gem & Jewellery Domestic Council, emphasized the detrimental effects of the tariffs on both India and the U.S., predicting a 100% impact on bilateral trade worth nearly $9 billion. Despite short-term challenges, Rokde and other leaders remain optimistic due to India's diverse trade options and resilient economy.
(With inputs from agencies.)
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