Gems, jewellery exporters rush to beat new US tariff deadline

A fresh US tariff deadline has sent Mumbai and Surat's gems and jewellery industry into overdrive, with exporters rushing to clear shipments by October 16, before potential new duties under the Sanctioning Russia and Iran Act take effect on October 18.

The law, signed by US President Donald Trump on September 18, authorises tariffs of up to 100% on countries that fall within specified categories of major buyers of Russian oil and gas or facilitators of sanctions evasion. India could be among the countries affected, although the law does not automatically impose a 100% tariff.

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With the US accounting for a significant share of India's gems and jewellery exports, manufacturers are pulling forward production and shipments to meet orders placed for the Christmas and holiday season. The 140 gem and jewellery units in Mumbai's SEEPZ special economic zone and nearly 4,000 diamond-cutting and polishing units in Surat have extended working hours to step up production. Exporters are also coordinating with US buyers to get confirmed orders cleared before the deadline. SEEPZ units have introduced overtime for their workers numbering around 80,000 to complete orders as fast as possible and ship them by October 16, said Adil Kotwal, chairman of the SEEPZ Gems and Jewellery Manufacturers Association. "This is the time of the year when US buyers place huge orders for the upcoming Christmas and holiday season."

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Mumbai's SEEPZ exported gems and jewellery worth about ₹36,000 crore in fiscal 2026. India exports around $9 billion of gems and jewellery to the US, making the market particularly critical for exporters facing another layer of tariff uncertainty. The rush is also visible in Surat, the country's diamond-cutting and polishing hub, with larger units extending working hours and smaller ones in Saurashtra, Bhavnagar and Amreli joining the effort. "Even the smaller units in Saurashtra, Bhavnagar and Amreli have increased working hours to complete their export commitments before October 18. The 4,000 diamond cutting and polishing units in Surat that employ around 1 million people are working extra hours, too," said Diamond Workers Union president Bhavesh Tank.

The uncertainty is prompting exporters to focus not only on shipment schedules, but also on how duties would be shared across the supply chain.

"Indian exporters are bringing shipments forward and working closely with US buyers to move confirmed orders before the new duties apply. Many are also keeping stock closer to the end customer through US-based inventory and fulfilment," said Aarav Bafna, director of Akoirah by Augmont, an exporter of lab-grown diamonds. "Companies are rewriting contract terms so it's clear who bears the duty, and they're keeping stock levels tight instead of building it up on guesswork," he said.

The tariff threat is particularly significant for the lab-grown diamond segment, where the US remains the most important market. Bafna said demand had become structural, particularly in bridal and fashion jewellery among younger consumers, even as tariffs test margins across the supply chain. Colin Shah, managing director of Kama Jewellry, said the industry was operating on lean margins and that a 100% tariff, if imposed, would force manufacturers, importers and retailers to absorb the impact or pass part of it to consumers.