US Tariffs on Indian Jewelry Rise to Nearly 16%
By Business Desk
US imposes a 10% tariff on Indian jewelry, raising total duties to ~16% effective July 24, 2026, due to forced labor concerns. Impacts diamonds, gemstones.
The United States has implemented a new 10% tariff on Indian gems and jewellery exports, effective July 24, 2026. This action, taken under Section 301, increases the total import duty for these products entering the U.S. market to approximately 16%.
The tariff imposition stems from concerns over forced-labor compliance, a classification that has drawn strong opposition from Indian industry bodies.
New Tariff Structure and Affected Products
This 10% tariff will be added to the existing Most Favored Nation (MFN) duty, which ranges from 5.5% to 6%, pushing the combined import duty to nearly 16%. This revised duty structure impacts a broad spectrum of Indian jewellery products.
Specifically, it applies to finished gold and diamond jewellery, rough and polished natural diamonds, various coloured gemstones, and lab-grown diamonds.
Competitive Landscape for Indian Exporters
While the new 10% tariff is lower than rates imposed on some other countries, it significantly disadvantages Indian goods. Several nations continue to enjoy duty-free access to the U.S. market.
Countries such as Botswana, Namibia, the Democratic Republic of the Congo, and Belgium are among those that maintain this competitive advantage.
Industry Response and Investor Outlook
The Gem and Jewellery Export Promotion Council (GJEPC) has voiced considerable concerns regarding the forced-labor classification, asserting its inaccuracy. The Council is actively advocating for diplomatic intervention and a bilateral trade agreement to mitigate these new levies.
Indian exporters may face pressure on their profit margins, needing to decide between absorbing the additional costs or passing them on to consumers, which could impact market share.
Investors in the sector are advised to closely monitor company-specific updates regarding their exposure to the U.S. market. Tracking export volumes and the progress of a potential trade agreement between India and the U.S. will be crucial for assessing future performance.