Indian gem and jewellery industry states US’s reciprocal tariffs will cause challenges for Indian businesses and US consumers alike

The Gem and Jewellery Export Promotion Council has urged the US government to uphold the spirit of the longstanding trade partnership between India and the US, fearing that the newly imposed 26% reciprocal tariff on Indian gem and jewellery exports to the US will cause challenges for Indian businesses and US consumers alike.

“Indian gem and jewellery industry, like the rest of the world, is trying to analyse the evolving global economic landscape due to the reciprocal tariff announcement by USA on countries worldwide,” announced the GJEPC in a press release on April 3. “The GJEPC though understands the US administration’s intent to address trade and tariff imbalances through reciprocal tariffs, however urges the US to uphold the spirit of the longstanding trade partnership between India and the United States, which has been built on mutual respect and shared economic interests.”

The GJEPC noted that the fact that the tariff also applies to competing nations in the global gem and jewellery industry presents both challenges and opportunities. However, the traders’ body stated that the 26% tariff is expected to significantly impact India’s diamond and jewellery sector, which is one of the industry’s most important exports to the US. 

“In short run, we anticipate challenges in sustaining India’s current export volume of $10 billion to the US market,” announced the GJEPC. “We urge the Government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector.”

The GJEPC is also actively engaging with stakeholders to find solutions to enable businesses to continue to access the US gem and jewellery market. The organisation was established by the government’s Ministry of Commerce in 1966 and was granted autonomous status in 1998.