The United States has sharply raised tariffs on Indian exports, doubling the rate from 25% to 50% in August 2025. According to KPMG\u2019s September 2025 report on U.S. tariff shifts, the move is linked to India\u2019s continued imports of Russian oil and its active role in BRICS, which has placed the country\u2019s gems and jewellery sector under intense pressure.<\/p>\n
KPMG highlights that gems and jewellery remains one of India\u2019s most US-exposed categories. In FY25, exports to America stood at USD 10 billion, representing 33% of India\u2019s total jewellery exports and 13.3% of US jewellery imports. India also fulfils nearly 45% of US diamond demand, making the sector particularly vulnerable.<\/p>\n
The report notes that tariffs could pose serious challenges for India\u2019s diamond cutting and polishing industry, which is already coping with falling polished diamond prices, low-cost alternatives, and sanctions on Russian rough. With over 85% of the industry comprising MSMEs, the additional duty burden threatens jobs and margins, especially in hubs like Surat.<\/p>\n
To mitigate the impact, exporters are considering strategic tie-ups and relocation of certain operations to Gulf nations such as the UAE, which enjoy lower US tariffs, attractive tax incentives, and advanced infrastructure. Such moves could provide Indian firms with a competitive edge even as bilateral tariff negotiations between India and the US remain unresolved.<\/p>\n
The gems and jewellery industry\u2019s heavy dependence on the US market underscores the urgency of diversifying export destinations while simultaneously lobbying for product-level relief in ongoing trade discussions.<\/p>\n","protected":false},"excerpt":{"rendered":"
The United States has sharply raised tariffs on Indian exports, doubling the rate from 25% to 50% in August 2025. According to KPMG\u2019s September 2025 report on U.S. tariff shifts, the move is linked to India\u2019s continued imports of Russian oil and its active role in BRICS, which has placed the country\u2019s gems and jewellery…<\/p>\n","protected":false},"author":1,"featured_media":33102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"thb-sponsors":[],"class_list":["post-33101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bulletin"],"acf":[],"yoast_head":"\n