India’s gem sector is preparing for potential US tariffs on exports of polished diamonds and jewellery, which could come into effect on 2 April 2025.
The move forms part of wider reciprocal trade measures under consideration by the US government, with India’s Gem & Jewellery Export Promotion Council (GJEPC) currently in contact with industry stakeholders and government officials to assess the likely impact and seek possible solutions.
Export Concerns Amid Uncertainty
The United States is India’s largest market for polished diamonds, with gross exports totalling $6.69 billion in 2024, according to data from the United States International Trade Commission. Currently, loose polished diamonds from India enter the US duty-free, while gold jewellery attracts import duties of between 5.5% and 7%.
India’s diamond manufacturing sector has raised concerns about the lack of clarity around the proposed tariff rates and whether they would apply to shipments routed through third countries. A recent report by the Global Trade Research Initiative estimated a possible tariff increase of 13.3% on Indian exports of diamonds, gold, and silver to the US, based on the average tariff differences between the two countries.
India currently applies a 5% import duty on polished diamonds and a 20% duty on jewellery made from gold, silver, and platinum. The GJEPC has been advocating for lower domestic import duties for some time.
GJEPC Briefs Industry and Engages with Authorities
The GJEPC held a meeting with industry participants on 25 March to outline the current situation and the Council’s actions. While concerns have been raised, there has been no official announcement from the US government confirming the changes.
“If the US implements a reciprocal tariff policy on India on April 2, India’s exports of gems and jewelry — particularly studded gold jewelry and cut and polished diamonds — will be largely impacted,” said GJEPC chairman Kirit Bhansali in a statement on 26 March.
Bhansali stated that the Council had approached the Indian government to support efforts aimed at reaching a resolution that safeguards exports and related employment. He added: “We have recently talked with our US counterparts also and [asked] them to lobby with [the] US government, as a large number of retailers and jobs are dependent on Indian supplies there.”
Operational Implications for Exporters
If the US proceeds with the tariff changes, Indian exporters — particularly those in cut and polished diamonds and studded gold jewellery — may need to review their pricing and supply arrangements. The lack of clarity around the final details is a concern for exporters and their international clients.
Some suppliers have reportedly asked US buyers to place orders before the possible implementation date, although others in the industry believe this may have limited impact.
The situation remains under review, and businesses involved in US-bound trade are advised to monitor further developments in the coming days.
