New 10% US tariff lifts duty on Indian jewellery imports to as much as 16%

A US Section 301 tariff effective July 24 adds 10% to Indian gems and jewellery exports, taking effective import duties to roughly 15.5%-16%. GJEPC says India remains better placed than several Asian hubs but faces a disadvantage against duty-free European and African diamond-trading markets.

— Source publishedSat, 25 Jul, 2026, 14:42 IST·First seen Sat, 25 Jul, 2026, 14:50 IST·Source BL · Consumer & Economy

What happened

Gem and Jewellery Export Promotion Council (GJEPC) · A new 10% US Section 301 tariff raises effective duties on Indian jewellery imports to about 15.5%-16%,

Key facts

  • 10% additional US Section 301 tariff on Indian exports
  • 5.5%-6% existing US MFN duty on jewellery
  • 15.5%-16% effective US import duty
  • 12.5% additional tariff for China, Hong Kong, Thailand, Türkiye, UAE, Israel and Vietnam
  • 60 economies covered by USTR forced-labour investigations

Why this matters

US-facing jewellery groups may find greater value in duty-efficient sourcing, European or African trading partnerships, and acquisitions that diversify production beyond India.

What to watch

  • Whether the 10% Section 301 rate is applied broadly across finished jewellery, loose diamonds, gemstones and components, or whether product-level exclusions emerge.
  • US Customs guidance on origin determination for jewellery using Indian-cut stones but finished or assembled in third countries.
  • Announcements of price increases or surcharge policies from major US jewellery chains, wholesalers and online marketplaces.
  • Evidence of order cancellations, delayed holiday-season buying, or reduced US export bookings from Indian gem and jewellery clusters.
  • Changes in India’s export incentive, duty-drawback, financing or logistics support intended to offset the landed-cost disadvantage.
  • Tariff treatment and capacity constraints in alternative sourcing hubs, which will determine whether buyers can realistically substitute India at scale.
  • US jewellery retailers are likely to seek immediate supplier concessions, re-open purchase orders and reduce inventory commitments for India-origin merchandise.
  • Indian exporters may prioritize higher-margin branded, bespoke and premium products where the tariff is a smaller percentage of final retail value.
  • Importers may increase use of bonded warehousing, adjust shipment timing and examine compliant country-of-origin and finishing structures.
  • Retail buyers may broaden sourcing from UAE, Belgium, Israel, Botswana, South Africa and domestic US manufacturers, increasing procurement complexity and lead-time risk.
  • Industry groups and exporters are likely to intensify lobbying for tariff exclusions, bilateral trade relief or an India-US sector-specific accommodation.

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