USTR floats 12.5% extra tariff on India; gems & jewellery exports to US already down 45% in FY26

A fresh USTR proposal for a 12.5% additional duty over forced-labour enforcement gaps stacks onto earlier reciprocal tariffs, deepening pain for Indian textiles, gems & jewellery and marine exporters. GJEPC-tracked gems & jewellery shipments to the US have collapsed 45% this fiscal, with $87B of India's US-bound goods trade exposed.

— Source publishedWed, 3 Jun, 2026, 17:15 IST·First seen Thu, 4 Jun, 2026, 11:19 IST·Source Forbes India

What happened

Gem and Jewellery Export Promotion Council · USTR proposes 12.5% additional tariff on Indian goods over forced-labour enforcement gaps. Textiles, gems &

Key facts

  • 12.5% additional tariff
  • 10% tariff
  • $149B India-US goods trade 2025
  • $87B India exports to US
  • 45% drop in gems & jewellery exports FY26
  • 25% additional duty

Why this matters

Accelerate diversification deals into Vietnam, Thailand and Turkey sourcing platforms while distressed Indian gem and textile exporters become acquisition or JV targets at compressed valuations.