Bling Blocked: Trump’s Tariffs Threaten ₹7,000 Crore Jewellery Empire

Tariff hike triggers panic across exporters

India’s gems and jewellery sector is reeling from a two-front economic assault launched by the Trump administration. First, the US government has imposed a steep 25% tariff on select imports from India, including handicrafts and jewellery. Days later, the tariff was doubled to 50%, sending shockwaves through exporters in Rajasthan and other key hubs.

The US accounts for nearly one-third of India’s gems and jewellery exports, valued at over ₹7,000 crore annually. With these new tariffs, the cost of Indian products in the American market has surged, threatening competitiveness and profitability.

Industry braces for losses and layoffs

Exporters are scrambling to find alternatives, including shifting manufacturing bases to low-tariff countries like the UAE and Mexico. Industry leaders warn that without swift action, the sector could face massive layoffs and production cuts.

Key highlights:
- US import tariffs on Indian gems and jewellery raised to 50%  
- Handicrafts and textiles also impacted, affecting ₹5,000 crore in exports  
- Rajasthan exporters hit hardest, with the US being a key market  
- Industry exploring relocation to UAE and Mexico to bypass tariffs  
- Job losses and revenue decline feared if no relief measures are taken  

Strategic pivot and global trade recalibration

Experts suggest that India could leverage free trade agreements with countries like Australia, Japan, and the UAE to open new export channels. The government may also need to negotiate tariff relief or offer domestic incentives to cushion the blow.

The sector, which employs millions and contributes significantly to India’s export economy, is now at a crossroads. A strategic pivot toward diversified markets and value-added products may be the only way forward.

Sources: New Indian Express, Times of India, India Today