Business News | Gold Jewellery Sector Raise Alarms over 50% US Tariffs

New Delhi [India], August 7 (ANI): With the US set to impose an additional 25 percent tariff on Indian gold jewellery exports from August 27--on top of the 25 per cent already in effect--industry leaders have expressed deep concern over the mounting pressure on the sector.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said, "The imposition of a 25 per cent tariff on Indian gold jewellery exports--already in effect--and the additional 25 per cent set to be enforced from 27th August represent a compounded blow to the sector."

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He warned of severe consequences for artisans. "This steep escalation not only renders our products significantly less competitive in the US market, but more critically, it jeopardises the livelihoods of thousands of skilled artisans who depend on export demand for their survival. A cumulative 50 per cent tariff threatens widespread job losses, destabilises local economies, and risks eroding a rich cultural heritage. We urge the government to act swiftly and engage in trade negotiations that protect these livelihoods and uphold India's global leadership in handcrafted jewellery."

Echoing similar concerns, GJC Vice Chairman Avinash Gupta emphasized the broader economic impact, including pressure on the Indian Rupee. "The 25 per cent tariff on Indian gold jewellery exports--already in effect--with an additional 25 per cent set to begin on 27th August, delivers a compounded blow to the sector. It makes our products less competitive in the U.S. market and jeopardizes the livelihoods of thousands of skilled artisans, many from marginalised communities, who sustain India's centuries-old jewellery craftsmanship through small workshops and family enterprises."

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This tariff shock is also pressuring the Indian Rupee, likely making gold costlier for domestic consumers and dampening demand within India--further straining the industry.

In FY 2023-24, India's gems and jewellery exports stood at 22 billion US dollars, projected to reach USD 100 billion by 2027.

India is the top global exporter of diamonds and the largest consumer of gold.

Gems and Jewellery exports increased by 10.74 per cent from USD 2.26 billion in April 2024 to USD 2.5 billion in April 2025. The gems and jewellery exports to United States are estimated to be USD 11 billion.

The central government has said it is committed to maintaining India's status as a global manufacturing hub with a focus on quality, standardization, and consumer protection. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)