Gems set to retain sheen, view cloudy for diamonds after US tariff cut

Kolkata: Washington's reciprocal tariff reduction is expected to help India's gems and jewellery exporters regain lost ground in the US market, after shipments fell 44% during April-December this fiscal.

However, diamond exporters are awaiting clarity on whether shipments of the precious stone will be covered under Annexure III of the US reciprocal tariff list, which could allow zero duty.

Duties on polished diamonds and coloured gemstones had surged from 0% to 10% in April, then to 50% by August.


The key categories that have been hard hit are exports of cut and polished diamonds, which fell by 60% to $1.4 billion, studded gold jewellery by 24.54% to $1.5 billion and plain gold jewellery by 29% to $183.84 million.

Lab-grown diamond (LGD) trade is also hopeful of garnering a higher share of the US market. "The decision to reduce tariff is a timely positive for the LGD ecosystem, as the US is the largest gem and jewellery market globally,," said Namita Kothari, founder of Akoirah by Augmont.