The Gem & Jewelry Export Promotion Council (GJEPC) has voiced robust concern following former US President Donald Trump’s announcement of a sweeping 25% tariff on all Indian imports, warning of great implications for commerce, jobs, and provide chains.
Kirit Bhansali, Chairman of GJEPC, said that the proposed transfer may considerably disrupt India’s financial cloth. “The US announcement of a 25% tariff on Indian items, together with unclear penalties affecting our strategic commerce relations, is deeply troubling. If enforced, it may set off a domino impact throughout our export sector, jeopardising provide chains and threatening the livelihoods of 1000’s,” Bhansali mentioned.
The US is India’s largest export vacation spot for gem and jewelry merchandise, accounting for over $10 billion yearly, almost 30% of the trade’s world exports. A tariff of this scale, GJEPC cautioned, would enhance prices, create cargo delays, distort pricing constructions, and exert large stress on your entire worth chain—from small artisans (karigars) to large-scale producers.
Trump’s declaration units India’s import tariff at 25%, efficient August 1, 2025, larger than charges supplied to a number of nations with which the US has commerce understandings. As an example, tariffs for the European Union stand at 15%, the UK at 10%, and Southeast Asian rivals like Indonesia, Vietnam, and the Philippines vary between 19–20%. India’s proposed fee, nevertheless, continues to be under China’s present 30%. Malaysia faces the same 25% fee.
Specialists have flagged the tariff announcement as a unfavourable sign for India, notably if commerce negotiations stay stalled. With the US-India commerce deal nonetheless underneath dialogue, the uncertainty may weigh on FY26 progress projections.
Aditi Nayar, Chief Economist at ICRA, emphasised that the financial fallout will largely depend upon the dimensions and scope of the penalties connected. “Earlier, when the US imposed tariffs, we revised our FY2026 GDP progress forecast for India down to six.2%, anticipating delicate export numbers and delayed non-public funding. The newly proposed 25% tariff and added penalty are extra extreme than we initially anticipated and are prone to create extra stress. The precise draw back will hinge on the character and scale of the penalties,” she mentioned.
With high-stakes commerce negotiations underway, trade leaders and policymakers are urging a swift decision that safeguards nationwide pursuits whereas preserving India’s robust financial ties with the US.
