Trump’s 27.1% tariff delivers a heavy blow to G&J sector in India

Trump’s 27.1 per cent tariff on India’s $10 billion diamond and jewellery exports–40 per cent of its global trade in the sector–delivers a heavy blow to the sector for India, according to GTRI (GLOBAL TRADE RESEARCH INITIATIVE).

“With value addition barely 3-4 per cent, margins are wafer-thin, and such duties can turn exports instantly unviable. Mechanical gold jewellery, worth $3.6 billion, is set to be hit hardest,” the report read.

In diamonds, the impact is even more complex. India exports $4.9 billion worth of cut and polished diamonds to the US, but US imports show only $2.5 billion. Buyers select a fraction and return the rest.

“A high upfront tariff disrupts this model, raising costs on even unsold stones, and could sharply reduce demand,” GTRI said.