HOW INDIAN JEWELLERY EXPORTERS ARE REACTING TO THE US DUTY SHAKE-UP

Indian jewellery exporters have responded swiftly to the U.S. tariff hike, rushing shipments, and reworking sourcing and pricing strategies. With the 27% duty now suspended, and trade talks underway, Anjana Vaswani explores how leading jewellers are adapting, recalibrating, and preparing for what comes next.

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When the United States announced steep reciprocal tariffs on Indian gem and jewellery exports in early April 2025, it sent shockwaves through India's $32.3 billion export industry. What followed was a masterclass in crisis management, strategic pivoting, and diplomatic manoeuvring that continues to unfold a story of resilience in the face of what many consider the most significant trade challenge to hit the sector in decades.

"It sounded very aggressive something we have never seen till now," reflects Dharmesh Parekh of Hasmukh Parekh Jewellers in Kolkata, adding, "No country, including the USA, has ever done something so dramatic." The initial announcement of a 26% tariff on Indian gems and jewellery threatened to upend a trade relationship worth $10-$11 billion annually. For an industry already experiencing a 14.5% decline in exports during FY 2023-24 amid global headwinds, the prospect of losing access to its largest market loomed as an existential threat.

The implications stretched far beyond balance sheets and corporate profits extending to the livelihoods of millions employed across India's extensive jewellery manufacturing ecosystem, from the diamond cutting workshops of Surat to the gold crafting centres of Tamil Nadu.

"The tariff news was really a shock to all of us," admits Vipul Sutariya of Dharmanandan Diamonds.

"We are concerned about our clients, and uninterrupted supply of the diamonds. For the pricing, we are waiting for the final negotiation output between both countries," he adds.

ANATOMY OF A TRADE CRISIS

India's exports in this sector reached $32.3 billion in FY 2023-24, with the United States accounting for approximately one-third of the total, making it the single largest market for Indian jewellery products.