GJEPC statement
Indian gem & jewellery industry, like the rest of the world, is trying to analyse the evolving global economic landscape due to the reciprocal tariff announcement by USA on countries worldwide. The Gem & Jewellery Export Promotion Council (GJEPC) though understands the U.S. administration’s intent to address trade and tariff imbalances through reciprocal tariffs, however urges the U.S. to uphold the spirit of the longstanding trade partnership between India and the United States, which has been built on mutual respect and shared economic interests.
The Trump administration’s announcement of a 26% reciprocal tariff on Indian gem and jewellery exports to the US would be a significant burden on Indian exporters and American consumers alike. While the tariff’s application to competing nations presents both challenges and opportunities, it is likely to significantly impact India’s diamond and jewellery sector—a cornerstone of its exports to the US. In the long term, we foresee a reshaping global supply chains. In short run, we anticipate challenges in sustaining India’s current export volume of USD 10 billion to the US market. We urge the Government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector.
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Applicable Tariffs in USA on the imports of Gem and Jewellery Products from India w.e.f 5th April 2025Commodity
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MFN duty applicable in USA for India
(A)
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Base Line duty of 10% w.e.f 5th April 2025
(B)
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Total Applicable tariffs from
5th April to 8th April
C=A+B
|
Country-Specific
Reciprocal Tariff Adjusted for India @26% w.e.f 9th April 2025
D= A+26%
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Cut and Polished Diamonds
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NIL
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10%
|
10%
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26%
|
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Gold Jewellery
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5% – 7%
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10%
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15% -17%
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31% – 33%
|
|
Platinum Jewellery
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5%-7%
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10%
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15% -17%
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31%-33%
|
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Silver Jewellery
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5%-13.5%
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10%
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15% – 23.5%
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31%-39.50%
|
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Articles of Silver
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2.7% – 3.5%
|
10%
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12.7% – 13.5%
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28.7% – 29.5%
|
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Articles of Gold
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3% – 7.9%
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10%
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13% – 17.9%
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29% – 33.9%
|
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Worked Coloured Gemstones
|
NIL
|
10%
|
10%
|
26%
|
|
Polished Lab Grown Diamonds
|
NIL
|
10%
|
10%
|
26%
|
|
Pearls
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NIl
|
10%
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10%
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26%
|
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Imitation Jewellery
|
Nil – 11%
|
10%
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10% – 21%
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26% – 37%
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Notes : USA Discounted Reciprocal Tariffs are over and above of MFN/effective Duty Rates for each country in USA . These additional Ad valorem duties shall apply until such time the USA determines that the conditions stated in the executive order dated 2nd April 2025 which includes lack of reciprocity , disparate tariff rates and non-tariff barriers , US trade deficit among others get satisfied and resolved.