Indian jewellery exporters retain US tariff edge, but duties still rise to 15.5–16%
A 10% additional US tariff on Indian gem and jewellery shipments, effective July 24, is 2.5 percentage points below rates faced by several competing hubs. GJEPC is seeking exemptions for natural diamonds and gemstones and faster India-US trade-agreement talks.
What happened
Gem & Jewellery Export Promotion Council (GJEPC) · Indian gem and jewellery exporters retain a 10% US Section 301 tariff, lower than several Asian trading hubs
Key facts
- 10% additional US tariff on Indian shipments
- 12.5% additional tariff for China, Hong Kong, Thailand, Türkiye, UAE, Israel and Vietnam
- 2.5 percentage-point tariff advantage for India
- 5.5-6% existing MFN duty
- 15.5-16% effective import duty on Indian jewellery exports to the US
- July 24 effective date
Why this matters
Companies should prioritize US-market partnerships, route-to-market efficiencies and advocacy for diamond and gemstone exemptions while monitoring progress on an India-US trade pact.
What to watch
- Whether the July 24 tariff is applied uniformly across HS codes or includes exemptions for loose natural diamonds, colored gemstones, and specific finished-jewellery categories.
- Any India-US trade-agreement timeline, formal tariff consultation, or reciprocal-tariff revision.
- US import data showing India gaining or losing share versus China, Thailand, Turkey, Vietnam, Hong Kong, and UAE-linked supply chains.
- Holiday-season and bridal-order bookings, especially changes in retailer reorder cadence and cancellation rates.
- Evidence of retail pass-through in US jewellery prices, promotional intensity, average selling prices, and unit sales.
- Exporter commentary on margin absorption, working-capital stress, and production or sourcing relocation.
- Indian exporters will prioritize US contracts with higher-value, differentiated designs and reduce exposure to low-margin commodity jewellery.
- US brands and specialty retailers will renegotiate vendor terms, split tariff costs, and seek longer price locks before holiday and bridal buying windows.
- Manufacturers will explore duty-drawback, bonded-zone, third-country finishing, and greater use of recycled metals or lower-cost stone mixes.
- GJEPC and major exporters will intensify lobbying for natural-diamond and gemstone exclusions and for faster bilateral trade negotiations.
- Retailers may raise ticket prices selectively, emphasizing financing, trade-in offers, and promotional value rather than broad list-price increases.