On July 30, US President Donald Trump announced that he would be imposing 25 per cent tariff on Indian goods, along with a penalty. The decision is set to affect several sectors in the country including fashion, jewellery, among others, and here’s what stakeholders have to say
Trump announced the new tariff on July 30. Photo Courtesy: AFP
US President Donald Trump has announced that imports from India will face 25 per cent tariffs from August 1 amid trade deal negotiations. It is a huge increase from the current 10 per cent, which was announced on April 2, on imports to the USA. While the talks are still on, August 1 is here, and the tariffs also include a penalty for purchasing crude oil and military equipment from Russia.
Among the many sectors, apart from medicines, exporters have said Indian labour-intensive goods such as garments, leather and non-leather footwear, gems and jewellery, carpets and handicrafts may get impacted due to this duty.
In 2024, India's main exports to the US included drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), vehicle and auto components (USD 2.8 billion), gold and other precious metal jewellery (USD 3.2 billion), ready-made garments of cotton, including accessories (USD 2.8 billion), and products of iron and steel (USD 2.7 billion).
Imports included crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft, spacecraft and parts (USD 1.3 billion), and gold (USD 1.3 billion).
While these include many industries, jewellery stakeholders react to the latest development:
Sonal Sawansukha, founder and creative director, Jewel Saga
With the current tariff system, I feel especially the high import duties, and the high cost of gold and other raw materials is creating lots of challenges for the jewellery business in India. It definitely makes the cost of making go higher, and in turn reduces the profit margins. It may even push people to pursue illegal ways of importing gold. So, in this way, it affects everyone. Be it local artisans or big jewellers, all of us get impacted by this. It makes it very hard for Indian brands to compete globally.
To solve this, India really needs to rethink this policy by lowering import duties and making it easier to get quality materials which can support skill development and design innovation, this will in turn help the industry grow. The government should help to build a strong ecosystem that supports quality, creativity and ethical ways of sourcing. This way Indian jewellery will be able to shine both domestically and internationally.
Neha Chelani, founder and creative director, Fine Silver Jewels
With the US set to impose a blanket 25 per cent tariff on Indian imports beginning August 1, our brand’s jewellery exports face an unprecedented challenge. The United States accounts for a big number in our brands exports, and this hike inflates costs and squeezes margins across the value chain, thus affecting the sales. Looking into the scenario the brand will focus its strategies towards other foreign and domestic markets until there is a fair resolution to the current tariff imposed by the US.
As a country, such trade barriers are disheartening, and that also when it is related to the biggest economy in the world. Having said that, I have full faith in our government that necessary steps will be taken, which will be in favour of India and Indians.
Rishi Jain, founder and creative director, Mirāsa Jewels
The imposition of a 25 per cent tariff by the US administration presents both a challenge and a catalyst for introspection within the Indian jewellery export ecosystem. While such policy shifts can momentarily affect pricing structures and margins, they also reinforce the need for long-term resilience, self-reliance, and innovation.
We remain committed to upholding the excellence of Indian craftsmanship while navigating global market dynamics with agility. India’s fine jewellery industry rooted in centuries of artisanal heritage, cannot be defined by geopolitical headwinds. Instead, this moment pushes us to reimagine our value chain, invest in strategic retail partnerships, and explore more direct-to-consumer channels globally.
The true value of Indian jewellery lies not just in its material worth, but in the cultural and artistic legacy it represents something that no tariff can diminish.
Disha Shah, founder and designer, DiAi Designs
The tariffs are going to have a major impact on the jewellery industry as a whole. Many brands in the US manufacture their fine jewellery in India and then sell directly to the final consumer there.
If the tariffs are implemented a 25 per cent hike would by default be passed on to the customer. This could possibly affect overall demand and reduce sale if customers are not alright with paying.
Alternatively, it could also increase demand for lightweight jewellery and lab-grown diamonds which are more affordable and would have a lower increase in the net amount promotionally.
(With inputs from PTI)
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