Gold bangles are displayed at a jewellery store
Credit: Reuters photo
Mumbai: The Indian gem & jewellery industry, like the rest of the world, is trying to analyse the evolving global economic landscape due to the reciprocal tariff announcement by the United States on countries worldwide.
The Gem & Jewellery Export Promotion Council (GJEPC) though understands the US administration's intent to address trade and tariff imbalances through reciprocal tariffs, however urges the US to uphold the spirit of the longstanding trade partnership between India and the United States, which has been built on mutual respect and shared economic interests.
“The Trump administration’s announcement of a 26% reciprocal tariff on Indian gem and jewellery exports to the US would be a significant burden on Indian exporters and American consumers alike. 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,” the GJEPC said in a statement.
"In the long term, we foresee a reshaping of global supply chains. In the short run, we anticipate challenges in sustaining India’s current export volume of $10 billion to the US market. We urge the Government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector,” it said.
Additionally, GJEPC is actively engaging with stakeholders to address these risks and advocate for balanced solutions that ensure continued access to the US market.