Hope sparkles anew for India jewellery after US tariff pause

India’s gems and jewellery industry is breathing a momentary sigh of relief after US President Donald Trump paused harsh tariffs that threatened exports across tens and tens of thousands of jobs.

- ANUJ SRIVAS

Across India, exporters and buyers worried over how they would absorb Trump’s pending 26% tariff on a multi-billion dollar sector.

Business related to US exports — everything from silver bracelets to diamonds — were on the verge of a near standstill in a vast export zone in India’s financial capital, Mumbai, industry executives told AFP.

But Trump’s 90-day-pause offers a “much-needed breather” to exporters, said Kirti Bhansali, chairman of India’s Gem and Jewellery Export Promotion Council.

“This window will help us realign and strengthen our position in the market,” Bhansali said. The pause, he said, would allow the sector to “stabilise operations and strategise for the months ahead”.

India shipped about $10 billion in gems and jewellery products to the United States in the 2024 fiscal year, accounting for roughly 13% of its total exports.

The industry, which has until now had to deal with far lower tariffs — ranging from zero to 6-7% depending on the item — helps sustain livelihoods of over four million people.