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HomeMarket NewsCommodities NewsUS tariffs on Indian gems and jewellery industry to be in addition to existing duties: Sources
The Gems and Jewellery Export Promotion Council (GJEPC) has warned that the new tariffs will be a significant burden on exporters.
By Manisha Gupta April 3, 2025, 6:57:04 PM IST (Published)
The United States has imposed steep tariffs on Indian gems and jewellery. According to government sources, the new tariffs will be in addition to the existing tariffs and impact Indian exports to the US, which account for nearly 30% of the country’s annual gem and jewellery exports.
Tariff hike details
| Polished Diamond | 0% | 27% |
| Gold Jewellery | 5.5-7% | 32.5%-34% |
| Silver Jewellery | 5% | 32% |
| Lab-Grown Diamonds | 0% | 27% |
| Gemstone Jewellery | 5-6% | 32-33% |
India remains better positioned than China but faces disadvantages against competitors like the UAE, Singapore, and Turkey, as per sources.
| Country | US Tariff on Jewellery |
| India | 27% |
| China | 54% |
| UAE | 10% |
| Singapore | 10% |
| Turkey | 10% |
Impact on Indian exporters
The Gems and Jewellery Export Promotion Council (GJEPC) has warned that the new tariffs will be a significant burden on exporters.
“We urge the Indian government to negotiate a bilateral trade agreement with the US to safeguard our exports,” GJEPC said in a statement. “In the short run, sustaining India’s current export volume will be a challenge. We also foresee a reshaping of global supply chains.”
Paresh Parekh, Partner and Retail Tax Leader, EY India, highlighted that the sector is already facing challenges.
“The Indian gem and jewellery sector has been struggling for the last few years due to changing customer preferences, lab-grown diamond technology, demonetization, soaring gold prices, and rising competition in polishing from other countries,” Parekh said. “The US tariff developments will aggravate the situation, leading to potential job losses and margin erosion. With over $10 billion in exports to the US, accounting for 11.5% of the sector’s exports, this move could have severe consequences.”
