The Indian gem and jewellery industry is grappling with the implications of the U.S. government's recent decision to impose a 27% reciprocal tariff on Indian exports. The move, part of a broader effort to address trade imbalances, is expected to create significant challenges for Indian exporters and American consumers alike.

The Gem & Jewellery Export Promotion Council (GJEPC) has expressed its concerns over the tariff’s potential impact on India’s jewellery sector, which plays a pivotal role in the nation’s exports to the U.S. The industry currently exports jewellery worth approximately USD 10 billion annually to the American market. GJEPC acknowledges the U.S. administration’s broader intent but urges the U.S. to honor the longstanding trade partnership between the two nations, built on mutual respect and economic cooperation.

“The imposition of a 27% tariff presents a considerable burden on Indian exporters and disrupts well-established trade flows. While the tariff applies to multiple competing nations, leading to shifts in global supply chains, India’s diamond and jewellery industry faces immediate challenges in maintaining current export volumes,” stated the GJEPC.

The Council is advocating for proactive measures from both the Indian and U.S. governments, particularly through the advancement of a Bilateral Trade Agreement. Such an agreement would help mitigate the negative consequences of the tariff and provide long-term stability for the sector.

In response to the evolving situation, GJEPC is actively engaging with stakeholders to explore solutions that ensure continued market access and sustainability. The Council remains committed to working with policymakers to secure a balanced and favorable trade environment for all parties involved.