On April 3, 2025, the Gem & Jewellery Export Promotion Council (GJEPC) expressed significant concern over the U.S. administration’s decision to impose a 27% reciprocal tariff on Indian gem and jewellery exports. This move is anticipated to substantially impact the Indian gem and jewellery industry, which exported approximately $10 billion worth of products to the U.S. in the fiscal year 2023-2024, accounting for nearly 30% of its total exports. GJEPC India
Potential Industry Impact
The newly imposed tariffs are expected to lead to several challenges:
- Export Reduction: A significant decrease in export volumes to the U.S. is anticipated, affecting the industry’s revenue. Reuters
- Employment Concerns: The industry, which employs millions, may face job losses due to decreased demand.
- Supply Chain Adjustments: Companies might need to explore alternative markets or adjust pricing strategies to remain competitive
GJEPC’s Call to Action
In response to the tariffs, the GJEPC is urging the Government of India to expedite a Bilateral Trade Agreement with the United States. Such an agreement is deemed crucial to address the tariff issues and secure the long-term interests of the gem and jewellery sector. Art of Jewellery
Furthermore, the GJEPC is actively engaging with stakeholders to develop balanced solutions that ensure continued access to the U.S. market for Indian exporters. The council emphasizes the importance of maintaining the longstanding trade partnership between India and the United States, built on mutual respect and shared economic interests.
As the situation evolves, the Indian gem and jewellery industry remains vigilant, assessing the potential reshaping of global supply chains and strategizing to navigate the challenges posed by the U.S. tariffs.
