Over one lakh jobs at stake in India's jewellery sector due to fresh US tariffs: Report

The Indian gem and jewellery industry is bracing for a significant blow following US President Donald Trump's announcement of a 25% tariff on Indian jewellery imports. Set to take effect from August 1, the hike marks a sharp jump from the previous 10% duty and has alarmed key stakeholders across India's export-driven jewellery sector.

According to an ANI report, Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, warned that the hike could devastate handmade jewellery exports, a segment that thrives on skilled artisanal craftsmanship.

Also Read: Trump sends strong message after slapping 25% tariff on India, says ‘I don’t care’

He recalled that a previous 10% tariff by the US had already caused widespread disruption. "Around 50,000 people reportedly lost employment. Now with the duty increased to 25%, over one lakh workers could be affected. This would be very unfortunate for the jewellery industry," Rokde told ANI.

India’s gem and jewellery sector is a major contributor to the country’s exports. According to data from the Ministry of Commerce, jewellery exports to the United States alone were worth USD 9.9 billion in the last financial year, making it one of India’s most valuable trading partnerships, the report added.

Colin Shah, Managing Director of Kama Jewellery, echoed the concern, calling the development a setback for an already strained industry. “With the US being one of the key export destinations, this will severely impact sectors like gems and jewellery that are heavily dependent on exports,” Shah told ANI.

He pointed to ongoing geopolitical unrest - including the Russia-Ukraine conflict and tensions in the Middle East - as existing challenges the industry has been grappling with. “With the return of Trump to power, his tariff threats have caused uncertainty in Indian markets. Going ahead, we expect trade activities with the US to remain muted,” he noted, the report added.

Still, there remains a glimmer of hope for exporters. Industry insiders are now closely watching the upcoming sixth round of India-US Bilateral Trade Agreement talks scheduled for the end of August. Many hope the dialogue could lead to a potential rollback or softening of the tariffs.

Also Read: ‘Liberation Day’ to ‘Strategic Uncertainty’: All the ways Donald Trump branded his 2025 trade tariffs

Also Read: Full tariff on foreign films in the US may dent Indian cinema’s global business