US is one of the key export destinations for India and that this move will severely impact industry, which is heavily dependent on exports.

Trump’s New Tariff Will Severely Impact Gem and Jewellery Industry Latest News : US President Donald Trump’s recent announcement of a 25% tariff on Indian imports is expected to severely impact India’s gem and jewellery industry, ANI reported, citing industry experts.

The gem and jewellery sector is a significant contributor to India’s export economy.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, told ANI that handmade jewellery exports "could be hit hard." “These products may no longer be accepted or sold there,” he added.

Rokde also noted that when the US had earlier imposed a 10% tariff, nearly 50,000 workers in the industry were reportedly affected.

"Previously, when there was a 10 per cent tariff, around 50 thousand people were suspected to be unemployed. If the same pattern follows with the new tariff hike, more than one lakh people could be impacted this time. Such an outcome would be very unfortunate for the jewellery industry," Rokde is quoted as saying in the report.

However, Rokde also stated that the new tariff imposed by the US might ultimately hurt America more than it impacts India. He noted that India had previously found alternative markets, including the European Union and the Middle East.

President Trump, on July 30, announced that India would be subjected to a 25% tariff along with a penalty, effective from August 1.

According to data cited by the Ministry of Commerce in the report, India exported jewellery worth USD 9.9 billion to the US in the last financial year, making the US one of the largest markets for Indian gems and jewellery.

The report also cites Colin Shah, Managing Director of Kama Jewellery, who expressed similar concerns. He said that the US is one of the key export destinations for India and that this move will severely impact the industry, which is heavily dependent on exports.

Colin Shah further noted that the industry has already been struggling due to global geopolitical tensions and ongoing conflicts.

The report adds that stakeholders in the industry are now looking forward to the sixth round of India-US bilateral trade talks, scheduled to take place by the end of August.

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