JAIPUR: The Trump administration’s decision to impose a 25% tariff on select imports from India has sparked panic among exporters in Rajasthan, particularly those trading with the United States. With America accounting for over Rs 17,000 crore of Rajasthan’s total exports worth Rs 85,000 crore, the move is expected to severely impact key sectors such as gems and jewellery, handicrafts, and textiles.
The most significant impact will be likely on exports of handicrafts worth Rs 5,000 crore, gems and jewellery worth Rs 7,000-8,000 crore, and garments and textiles worth Rs 1,500 crore to the US. Until now, only textiles attracted a tariff of 5.5%. However, if a uniform 25% tariff is enforced across these categories, exporters fear losing a significant share in the American market.
Gems, jewellery sector at risk
Previously, this trade faced a modest 5.5% duty. Now, the 25% tariff set to come into effect from August 7 poses a serious threat. Speaking to this newspaper, Naveen Jain, Jeweller and proprietor of Lord Krishna International, said, “Every year, Rajasthan exports gems and jewellery worth Rs 7,000–8,000 crore to the US. So far, the tariff was 5.5%. With the jump to 25% from August 7, it will be extremely challenging for Indian exporters to remain competitive.”
Sanjay Kala, former president of the Jewellers Association and Managing Director of Kinu Baba Gems India Pvt Ltd, echoed the concerns. “This 25% tariff by the US is a massive challenge for Rajasthan’s gems-jewellery, handicrafts and textile sectors. Exports worth over Rs 17,000 crore will be directly affected. Our products will lose their competitive edge globally, leading to a fall in exports and risking the livelihoods of lakhs of artisans and entrepreneurs.”
Kala further emphasised the need for immediate government intervention. “This will have severe economic and social consequences. With such a steep duty in our biggest export market, losses are inevitable. The Centre must initiate strong diplomatic talks with the US and announce special relief schemes to support exporters, ensure continuity in production, and protect employment.”
He added, “We must also diversify our export strategy by tapping into other global markets. Our industry has overcome many challenges before, and with government support and collective resilience, we will navigate this as well.”
Jaipur and Jodhpur at the centre of impact
Region-wise, Jaipur alone exports around Rs 5,000 crore worth of gems and jewellery to the US every year. The recent increase in US import duty from 5.5% to 15.5% had already dealt a blow to Jaipur’s exports. Now, with a proposed 25% duty, the situation is expected to worsen further.
Ashok Maheshwari, convener of the Jaipur Handicraft Exporters Association (JAS), confirmed the damage already visible from the earlier hike.
“Jaipur’s exports were hit even after the last tariff hike. If the duty isn’t rolled back now, small and medium exporters will face major setbacks.”
Jodhpur, known for its vibrant handicraft industry, exports around Rs 2,500 crore worth of products to the US annually. Exporters fear that American buyers may now turn to Turkey and Mexico, where import duties are only around 10%, or rely more heavily on China, whose domestic subsidies and competitive pricing create additional challenges.
Dr Bharat Dinesh, president of the Jodhpur Handicraft Exporters Association, warned, “India’s handicraft sector holds a special place in global trade. This tariff decision will be disastrous for thousands of artisans and small businesses. The central government must treat this as a priority and begin high-level talks with the US administration immediately.”
Call for policy-level intervention
Rajiv Arora, president of the Federation of Rajasthan Exporters, also voiced deep concern. “To stay competitive globally, especially after this tariff hike, the government must bolster production-linked incentive (PLI) schemes and offer targeted relief packages for affected exporters.”
As trade tensions escalate, Rajasthan’s export-driven sectors are bracing for a turbulent period. Without swift diplomatic and policy-level intervention, the state’s trade ties with the US may suffer lasting damage.