US Tariff Increase to 25% Could Significantly Affect India’s Gem and Jewellery Sector

July 31, 2025

New Delhi: The recent announcement by US President Donald Trump to impose a 25% tariff on Indian imports is expected to have a severe impact on India’s gem and jewellery industry, which is a key player in the country’s export sector, according to industry manufacturers and exporters speaking with ANI.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, stated, “Exports of handmade jewellery could face major setbacks. These products might no longer find acceptance or buyers in the US.”

He further pointed out that when the US previously imposed a 10% tariff, around 50,000 workers in the industry reportedly lost their jobs. Rokde warned, “If the same pattern repeats with the new, higher tariff, over one lakh people could be affected. This would be a very unfortunate situation for the jewellery industry.”

The new tariffs are scheduled to take effect from August 1, Rokde confirmed, emphasizing, “The tariff has increased from 10% to 25% and will be enforced starting August 1.”

Despite the potential impact on India, Rokde suggested that the US might face more significant consequences. He noted, “Indian jewellery is exported worldwide. India has also found alternative markets like the European Union and the Middle East, which could help offset some losses.”

According to the Ministry of Commerce, the US remains one of India’s top markets for gems and jewellery, with exports valued at USD 9.9 billion during the last financial year.

Colin Shah, Managing Director of Kama Jewellery, shared similar concerns. “With the US being a major export destination, sectors like gems and jewellery that rely heavily on exports will face serious repercussions,” he said.

He also highlighted that the industry has been struggling due to ongoing geopolitical tensions involving Russia, Ukraine, and the Middle East for over two years.

“With Trump’s return to power and his tariff threats, there’s increased uncertainty in the Indian market. We expect trade relations with the US to remain subdued,” Shah added.

Nevertheless, industry representatives are hopeful that the upcoming sixth round of India-US Bilateral Trade Agreement negotiations at the end of August could lead to some relief or a favourable agreement when US officials visit India.