{"id":37390,"date":"2026-07-27T15:12:25","date_gmt":"2026-07-27T09:42:25","guid":{"rendered":"https:\/\/gjepc.org\/solitaire\/?p=37390"},"modified":"2026-07-27T15:12:25","modified_gmt":"2026-07-27T09:42:25","slug":"new-u-s-tariff-regime-puts-indias-gem-jewellery-exports-under-pressure-gjepc","status":"publish","type":"post","link":"https:\/\/gjepc.org\/solitaire\/new-u-s-tariff-regime-puts-indias-gem-jewellery-exports-under-pressure-gjepc\/","title":{"rendered":"New U.S. Tariff Regime Puts India\u2019s Gem & Jewellery Exports Under Pressure: GJEPC"},"content":{"rendered":"

The Gem & Jewellery Export Promotion Council (GJEPC) has taken note of the United States\u2019\u00a0transition from the temporary Section 122 balance-of-payments surcharge to the new Section 301 tariff regime, effective from 24 July 2026, under which the additional tariff on Indian gem and jewellery exports remains unchanged at 10%.<\/span>\u00a0<\/span><\/p>\n

The new tariff framework follows the conclusion of investigations by the Office of the United States Trade Representative (USTR) into the implementation and enforcement of prohibitions on imports produced with forced labour across 60 economies.<\/span>\u00a0<\/span><\/p>\n

While the continuation of the 10% tariff presents ongoing challenges for Indian exporters, India has secured placement in the lower 10% tariff band\u202fafter adopting a prohibition on forced labour imports. This provides Indian exporters with a 2.5 percentage-point tariff advantage\u202fover several competing manufacturing and trading hubs, including China, Hong Kong, Thailand, T\u00fcrkiye, the UAE,\u00a0Israel\u00a0and Vietnam, all of which are now subject to a 12.5%\u00a0additional\u00a0tariff.<\/span>\u00a0<\/span><\/p>\n

Kirit Bhansali,\u00a0Chairman, GJEPC,<\/span>\u00a0<\/span><\/b>said,\u00a0\u201cAt the outset, we categorically reject any implication that India\u2019s gem and jewellery sector is linked to forced labour. Repeated studies have been commissioned that\u00a0demonstrates\u00a0the industry\u2019s long-standing commitment to responsible sourcing, worker welfare, and ethical business practices. We also welcome the Government of India\u2019s recent amendment to the Foreign Trade Policy that bars the import of goods produced, wholly or partly, with forced labour\u2014an important step that reinforces India\u2019s commitment to human rights and aligns our trade rules with internationally accepted labour standards.<\/span>\u00a0<\/span><\/p>\n

\u201cSo\u00a0imposing of 10% U.S. tariff under the new Section 301 regime, which is not at all justified,\u00a0remains\u00a0a challenge for India\u2019s gem and jewellery exports, particularly as key competing trading centres in\u00a0diamond \u202fcontinue\u00a0to enjoy duty-free access for natural diamonds. While India\u2019s placement in the lower tariff band offers some relative competitiveness in terms of jewellery, bridging the remaining tariff gap through an early India\u2013U.S. Bilateral Trade Agreement and securing tariff relief for natural diamonds and coloured gemstones as provided to countries like EU, Malaysia \u202fremain our key priorities.\u201d<\/span>\u00a0<\/span><\/p>\n

Key Advantages for India<\/span><\/b>\u00a0<\/span><\/p>\n