New Delhi, Apr 4 (KNN) The US government, under President Donald Trump, has announced a steep 27 per cent tariff on the gems and jewellery industry, raising concerns among Indian exporters.
The United States, a major importer of Indian jewellery, accounts for nearly one-third of India’s USD 32 billion gem and jewellery exports.
The new tariff changes will significantly impact various product categories, including cut and polished diamonds, which were previously duty-free but will now attract the 27 per cent levy.
Gold and platinum jewellery will face tariffs of 32-34 per cent, while silver jewellery could see a duty as high as 40.5 per cent. Additionally, lab-grown diamonds and imitation jewellery will also experience considerable hikes, reaching up to 38 per cent.
Industry experts have expressed concerns about the potential disruption. Ramit Kapur, Managing Director of GSI India, stated that major export categories like studded gold jewellery and polished diamonds will be hit the hardest.
However, he noted that high-value studded jewellery could remain resilient due to the strong demand for quality craftsmanship and certification in the US market.
Rajesh Rokde, Chairman of the Gem and Jewellery Council of India (GJC), emphasized that tariffs go beyond economic measures and could alter global trade partnerships. He stressed the importance of strategic foresight to navigate these challenges effectively.
On the domestic front, Saurabh Gadgil, CMD of PNG Jewellers, reassured that Indian businesses that do not import jewellery from the US will remain unaffected. However, he warned that the US economy might face inflationary pressures due to higher import costs, affecting global trade dynamics.
With concerns over losing market share to other countries not facing these tariffs, experts urge swift action from Indian policymakers to safeguard the nation’s stronghold in the global jewellery trade.
(KNN Bureau)
