MUMBAI: The announcement of a sweeping 50% tariff on all Indian goods by the United States is a deeply concerning development and blanket tariff of this magnitude is severely devastating for the sector, Kirit Bhansali, Chairman of Gem & Jewellery Export Promotion Council (GJEPC) said on Monday.
The United States is industry’s single largest market, accounting for over $10 billion in exports, nearly 30% of their total global trade.
“There is significant dependency on the US market, as 85% of exports from SEEPZ SEZ, which provides 50,000 jobs, is directed there. For cut and polished diamonds, half of India’s exports are US-bound. With revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain—from small karigars to large manufacturers,” said Bhansali.
"What adds to the concern is that competing manufacturing hubs such as Turkey, Vietnam and Thailand continue to enjoy significantly lower tariffs of 15%, 20% and 19% respectively, making Indian products relatively less competitive in the US market. This imbalance, if unaddressed, could erode India’s long-standing position as a key supplier to the US,” he added.
Bhansali further stated that they are concerned about the possibility of trade rerouting through low-tariff destinations such as Mexico, Canada, Turkey, UAE, or Oman.
“While we understand that no trade talks can happen in the current scenario, we urge the Government for immediate relief. We appeal for policy reforms and extensive support to aid the industry in these extraordinarily challenging times,” said Bhansali.
Some of the relief sought from the government include duty drawback or reimbursement scheme, covering approximately 25–50% of the new tariffs imposed on gems and jewellery exports only to the USA from August to December 2025, deferment of interest of six months, from 1st August 2025 to 1st January 2026, as was done during the COVID-19 period, allowing DTA sales, and credit rating to gems and jewellery sector.
