The Gem & Jewelry Export Promotion Council (GJEPC) has voiced sturdy 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 might considerably disrupt India’s financial material. “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 might set off a domino impact throughout our export sector, jeopardising provide chains and threatening the livelihoods of hundreds,” Bhansali stated.
The US is India’s largest export vacation spot for gem and jewelry merchandise, accounting for over $10 billion yearly, practically 30% of the business’s world exports. A tariff of this scale, GJEPC cautioned, would improve prices, create cargo delays, distort pricing buildings, and exert great 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. For 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 price, nevertheless, continues to be beneath China’s present 30%. Malaysia faces an analogous 25% price.
Specialists have flagged the tariff announcement as a detrimental sign for India, significantly if commerce negotiations stay stalled. With the US-India commerce deal nonetheless beneath dialogue, the uncertainty might weigh on FY26 development projections.
Aditi Nayar, Chief Economist at ICRA, emphasised that the financial fallout will largely depend upon the dimensions and scope of the penalties hooked up. “Earlier, when the US imposed tariffs, we revised our FY2026 GDP development forecast for India down to six.2%, anticipating comfortable 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 stated.
With high-stakes commerce negotiations underway, business leaders and policymakers are urging a swift decision that safeguards nationwide pursuits whereas preserving India’s sturdy financial ties with the US.
