The United States’ recent decision to impose sweeping import tariff increases—part of a broader strategy dubbed “Make America Wealthy Again”—is poised to trigger substantial shifts across the global gem and jewellery supply chain. With new tariff rates varying by country, and India facing a 26% import duty on jewellery, industry leaders are warning of rising costs, disrupted trade flows, and potential relocation of manufacturing operations to mitigate the impact.
Overview of the New Tariff Policy
Announced in April 2025, the new US tariff structure affects jewellery imports from a range of key suppliers. Rates differ by trading partner, with the European Union subject to a 20% tariff, the United Kingdom 10%, and higher levies targeting countries such as India, Cambodia, and China. The policy shift follows a trend of increasing protectionism, reviving concerns about the vulnerability of globalised supply chains.
The US is the world’s largest jewellery market, importing over $89 billion worth of gems and jewellery in 2024, according to the US International Trade Commission (USITC). As such, changes in its import policy have far-reaching implications.
Global Impact on Jewellery Exporters
Several leading jewellery-exporting countries are expected to bear the brunt of the policy, including India, Thailand, and China, all of which supply a wide range of finished jewellery, cut and polished diamonds, and lab-grown stones to the US market.
India, which accounts for approximately 13% of US jewellery imports, is among the hardest hit. Its gem and jewellery exports to the US totalled $9.95 billion in FY24, with key product categories including cut and polished diamonds ($5.6 billion), studded gold jewellery ($2.55 billion), and lab-grown diamonds ($831 million).
Adil Kotwal, President of the SEEPZ Gems & Jewellery Manufacturers’ Association in India, noted the vulnerability of specialised export zones such as SEEPZ, which handles 85% of India’s diamond-studded jewellery exports to the US. He cautioned that the new tariffs could jeopardise tens of thousands of jobs in a sector that is both export-dependent and labour-intensive.
Historical precedent suggests a prolonged impact. When the US withdrew India’s benefits under the Generalized System of Preferences in 2007, Indian gold jewellery exports to the US halved within a year and did not recover to previous levels for over a decade.
Strategic Shifts and Competitive Realignment
Industry analysts predict the US will increasingly look to source jewellery from nations that benefit from Free Trade Agreements (FTAs) or lower tariffs. Countries such as Jordan, which enjoys duty-free access, and those in the European Union, where tariffs on US jewellery imports are as low as 2.5%, could become more attractive sourcing hubs.
Some manufacturers are already considering relocating production to FTA-friendly jurisdictions such as the UAE, Oman, or Singapore. This trend could accelerate if bilateral agreements are not quickly renegotiated to offset tariff disadvantages.
In Thailand and Vietnam—already established jewellery manufacturing centres—industry representatives expect new opportunities to capture market share from tariff-affected competitors. The potential for increased orders and new partnerships could drive investment into these regions’ manufacturing capacities.
Industry and Brand Responses
Multinational brands are also evaluating their exposure. Pandora, which maintains production across multiple Asian markets including India and Thailand, has estimated an annual gross impact of around DKK 1.2 billion (£135 million) under the new tariff regime. The company is exploring price adjustments and strategic supply chain restructuring to offset rising costs.
Meanwhile, Martin Rapaport, Chairman of Rapaport Group, has issued guidance to diamond and gem stakeholders to suspend outbound shipments from the US and consider redirecting inbound flows into the country, suggesting that US domestic demand and pricing may temporarily outperform global benchmarks.
Trade Advocacy and Negotiation Efforts
Jewellery trade bodies in affected countries are calling for swift diplomatic intervention. The Gem & Jewellery Export Promotion Council (GJEPC) of India has urged its government to resume negotiations toward a bilateral trade agreement with the US to stabilise the sector. Chairman Kirit Bhansali warned that failure to secure tariff relief could result in a loss of global competitiveness.
According to the GJEPC, “While the tariff’s application to competing nations presents both challenges and opportunities, it is likely to significantly impact India’s diamond and jewellery sector—a cornerstone of its exports to the US. In the short run, we anticipate challenges in sustaining India’s current export volume of USD 10 billion to the US market.”
Similar concerns are emerging from other markets. Export associations in Turkey, Sri Lanka, and South Korea are closely monitoring the policy, with discussions underway regarding potential tariff mitigation through renegotiated trade agreements or shifting production to more favourable jurisdictions.
Conclusion: Preparing for a Reshaped Global Jewellery Market
The US tariff hikes represent a pivotal development for the global jewellery industry, with both short-term disruption and longer-term structural change expected. Exporting nations with strong trade ties to the US may see temporary setbacks, while those with FTA advantages could benefit from increased sourcing interest.
For jewellers and manufacturers, the immediate priority is to reassess sourcing, pricing, and production strategies in response to evolving cost dynamics. Strategic flexibility and proactive engagement with policymakers will be critical to maintaining competitiveness in a more protectionist trade environment.
With further tariff details and implementation timelines expected in the coming weeks, the global jewellery trade is entering a phase of accelerated recalibration. Stakeholders across the value chain are advised to stay alert to policy developments and position themselves to adapt swiftly.
