Trump's 25% tariff may put pressure on India’s gem and jewellery exports

The 25% tariff with additional penalty by the US from August 1 will hit India’s gem and jewellery exports hard as the industry fears it will lead to lower orders with prices going up there and an impact on profit margins as US buyers are expected to indulge in stiff negotiation on prices.

At present, the Indian industry faces a 10% tariff from the US which was imposed in April. Before that the duty was nil on cut and polished diamonds, 5-7% on gold and platinum jewellery, and 5-13.5% on silver jewellery.

“It is a black day for the country’s gem and jewellery trade,” said Kirit Bhansali, chairman of Gem & Jewellery Export Promotion Council. “We are shocked to hear that the US will put a 25% tariff along with a penalty. A blanket tariff of this magnitude will inflate costs, delay shipments, distort pricing, and place immense pressure on every part of the value chain,” he said.


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India is the global hub for diamond cutting and polishing, with the US primarily buying diamond jewellery from the country. The industry fears there could be job losses in the diamond hub in Surat, which employs around 10 lakh people.

In fact, exports had slowed down after the US had announced a 10% tariff on April 9.

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The US is the largest export market accounting for 35% of India’s gem and jewellery exports of $10-billion in 2024-25.

Vipul Shah, managing director of Asian Star, a diamond exporter, said the margin of the exporters will be squeezed due to the high tariff. “It has put a big question mark over the survival of the industry,” he said.

Industry executives said that the miners like De Beers and Alrosa are unlikely to bring down the prices of rough diamonds.