India is the third largest exporter of cutting and polishing diamonds, now facing trade challenges after US Tariffs Hit India Jewellery Exports by 27%, which is severely impact the industries that mostly relies on U.S. market.
New tariff threatens to shake the industries foundation by creating chaos in India’s key exports like gold jewellery, diamonds, precious gemstones. Let’s look deeper into the impact and what lies ahead for Indian Jewellers.
How US Tariffs Will Impact India’s Jewellery Industry
Declining Market Share in the US
The US is the larger importer of Indian Jewellery rate of total export is nearly 30% which is great and with these tariffs imposed made difficult for Indian Jewellers to compete with countries like Thailand, Italy and China. They have taken the leverage in price rather than India. Higher costs will push US retailers and buyers to find other alternative source options which directly affecting the Indian manufacturers.
Job Losses & Economic Ripple Effects
Labor-intensive industry is the mainly sector of Indian jewellery which providing employment to millions of artisans, craftsman and traders. The higher tariffs could lead to a sharp decline in demand for many workshops and industries to shut down completely. This will particularly impact Gujarat, Maharashtra and Rajasthan, these are the hubs for India’s diamond cutting and gold jewellery manufacturing.
Increased Cost Pressure on Jewellers
Gold prices is already rising, material cost increasing, and higher the logistics expenses. Now additional 27% tariff makes Indian jewellery more expensive, US Tariffs Hit India Jewellery Exports which squeezing the margins in a profit for the jewelers with making is more challenging for exporters to sustain their businesses in the US market.
Impact on the Global Supply Chain
India is the widely accepted leader in the diamond cutting and polishing, handling over 90% of the world’s diamonds. After imposing tariffs by the US, the global supply chain has been disrupting and many International luxury brands, wholesalers and retailers has affected. These affect may rise up jewellery prices for American consumers.
Can India Find a Way Out? After US Tariffs Hit India Jewellery Exports
Trade Negotiations & Tariff Reduction Strategies
The Indian government is in talks with the US to negotiate tariff imposed but If India may lower tariffs on imports worth $23 billion in exchange the reciprocal for Indian jewellery import in US. However, it is yet uncertain result of the discussion, may be it will lead to immediate relief for Indian Jewellers.
Exploring Alternative Markets
US Tariffs Hit India Jewellery Exports leading India to find alternate markets. Now US market are going in a sideways, Indian Jewellers might be shifting to focus on Europe, the Middle East and Southeast Asia. Strengthening trade agreements with UAE and expanding Africa’s emerging market that could be helping in offsetting the decline in US sales.
Conclusion
- The US-India trade tensions now casting over a shadow in India’s gold jewellery and diamond export sector.
- The US Tariffs Hit India Jewellery Exports, high tariffs imposing on the gold and diamond jewellery the industry may face sales challenges which impacting on the jewellery industries.
- Industry must adapt to diversifying the markets for exports, lobbying for policy changes and embracing digital and direct-to-consumer models.
- It depends on India’s ability to make a stand after US Tariffs Hit India Jewellery Exports storm to innovate, negotiate and expand beyond its traditional markets.
