US tariff cut brings relief to gem, jewellery exporters

Tue Feb 03 2026

The reduction in US tariff to 18 per cent from 50 per cent will bring in big relief to gem and jewellery exporters who are already reeling under sharp run-up in gold prices depressing demand. Colin Shah, MD, Kama Jewelry said the US reciprocal tariffs being slashed to 18 per cent comes as a great relief to the Indian gems and jewellery sector and is well revered.

The US has been a prominent consumer market of Indian gems and Jewellery and the sentiment had taken a hit due to the tariff implications. This partial relaxation will reinstate confidence in Indian jewellery manufacturers and exporters as well the buyers in the American market, he said.

In the first nine months of this fiscal, exports to the US have already fallen 44 per cent to $3.86 billion against $6.95 billion logged in the same period last year.

Overall gem and jewellery exports between April and December was flat y-on-y at $20.75 billion. The US is the largest market for Indian gems and jewellery, accounting for over $10 billion of annual exports.

Nearly 32 per cent of the sector’s total exports are directed to the US, which makes the sector vulnerable to trade disruptions. However, with the tariff rate now moderating to 18 per cent, Indian textile exports are once again looking competitive compared with Asian peers, said a leading exporter.

Source: https://www.thehindubusinessline.com/