US court blocks tariff hikes; Relief for gem, jewellery exporters

A US Federal court ruling to block President Donald Trump’s ‘Liberation Day’ tariffs has come as a major relief to gem and jewellery exporters even as the uncertainty over demand revival still lingers.

Earlier, the increase in tariff had raised upfront duties on shipments from $60,000 to $3,20,000 per million-dollar consignment, putting tremendous pressure on exporters’ cash flows.

In a ruling delivered on Wednesday, a three-judge panel at the Court of International Trade in Manhattan declared the executive orders issued on April 2 as ‘unlawful.’ These orders had introduced a 10 per cent baseline tariff on most goods entering the US and higher duties on imports from countries with large trade surpluses such as China and the European union.

Suvankar Sen, MD & CEO, Senco Gold said that the US court decision will help jewellery exports from India in the short run till steps are taken by the US government.