President Donald Trump has announced a 26% tariff on Indian imports to the United States, a decision that could severely impact India’s $32 billion gem and jewelry industry, according to industry experts. The move comes as part of Trump’s broader "Reciprocal Tariffs" policy, which imposes a minimum 10% tariff on most U.S. imports and significantly higher rates on certain countries.

According to Reuters, India’s jewelry exports—already under strain due to weak demand from China—could face further disruption as higher tariffs make Indian products less competitive in the U.S. market. Colin Shah, Managing Director of Kama Jewelry, warned that the new tariff would significantly impact exports, urging India to negotiate a long-term bilateral trade deal with the U.S. to mitigate the damage.

Similarly, Shaunak Parikh, Vice Chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC), expressed hope that India could strike a trade agreement with the U.S. in the coming months to ease the burden on exporters.

Jewelry is India’s third-largest export category to the U.S., following engineering and electronics goods. The American market accounts for approximately 30.4% of India’s total jewelry exports, contributing nearly $10 billion annually. However, with declining demand from China and an already 14.5% drop in exports during FY 2023-24, this additional tariff could deal a major blow to the industry.