In a welcome move for Indian gem and jewellery exporters, a US Federal court has blocked President Donald Trump’s controversial ‘Liberation Day’ tariffs, which had threatened to significantly raise duties on imported goods, including jewellery. As reported by The Hindu Business Line, this legal decision comes as a relief for an industry that was bracing for a steep hike in tariffs from 6% to 26%.
The Court of International Trade in Manhattan declared the executive orders issued on 2 April as “unlawful”. These directives sought to impose a 10% baseline tariff on most US imports, with even higher duties targeted at countries with major trade surpluses, such as China, the European Union — and initially, India. The 26% tariff on Indian gem and jewellery exports was originally set to take effect on 9 April but had been deferred to 9 July pending legal proceedings.
According to The Hindu Business Line, the proposed tariff hikes would have significantly burdened exporters. For instance, SEEPZ-based jewellery exporters — 64% of whose $3.5 billion annual shipments go to the US — would have seen their upfront duties skyrocket from $60,000 to $320,000 per million-dollar consignment. This would have placed immense strain on exporter cash flows amid already sluggish global demand.
While the US court’s ruling doesn’t resolve all industry concerns, it offers a crucial reprieve and underscores the importance of policy stability in maintaining India’s position as a leading player in the global gem and jewellery trade.