Anxious jewellery traders say Trump’s 50% tariff will harm Indian exports and increase costs | Mumbai News

Mumbai: India’s bullion and jewellery industry has expressed anxiety over US President Donald Trump’s proposed imposition of 50% tariff on imports from India. No less than 80-85% of Seepz SEZ jewellery manufactured in Mumbai is exported to the USA. Should the tariffs persist, the spectre of job losses in India cannot be ruled out either, they said.The United States is India’s single largest market, accounting for over $10 billion in exports, nearly 30% of Indian industry’s total global trade.Sanjay Shah, director, Gold Star group, said, “The tariffs will impact us in a big way. We have a time frame within which we have to ship what we can to the USA. After that, we may have to look for other locations [outside India] where lower duties apply, where we can manufacture and export. But that is difficult and can only be a temporary solution. Manufacturing elsewhere or re-routing will both increase the cost of production. And where will we find the skilled artisans to do so other than India? The US does not have them. Moreover, how much money can you save by doing so either. So the time frame is important, how long these tariffs last.”Shah said the diamond trade has no option. “In diamonds you cannot do anything. They have to be majorly produced here. Small diamonds only in India, the bigger ones maybe in China. So you can save only on gold and labour,” he said.Rajesh Rokde, chairman, All India Gem and Jewellery Domestic Council (GJC), said, “The imposition of a 25% tariff on Indian gold jewellery exports — already in effect — and the additional 25% set to be enforced from Aug 27 represents a compounded blow to the sector. This steep escalation not only renders our products significantly less competitive in the US market, but, more critically, it jeopardises the livelihoods of thousands of skilled artisans who depend on export demand for their survival. These craftsmen, many from marginalised communities, are the backbone of India’s jewellery ecosystem, preserving centuries-old techniques through small workshops and family-run enterprises.”Rokde said, “A cumulative 50% tariff threatens widespread job losses, destabilises local economies, and risks eroding a rich cultural heritage. We urge the [Indian] govt to act swiftly and engage in trade negotiations that protect these livelihoods and uphold India’s global leadership in handcrafted jewellery.”Avinash Gupta, vice-chairman, GJC, said, “This tariff shock is also pressuring the Indian rupee, likely making gold costlier for domestic consumers and dampening demand within India, further straining the industry.”Kirit Bhansali, chairman, GJEPC (Gem & Jewellery Export Promotion Council), said, “The sweeping 50% tariff on all Indian goods will have far-reaching repercussions across India’s economy, disrupting critical supply chains, stalling exports, and threatening thousands of livelihoods. The Indian gem and jewellery sector, in particular, stands to be severely impacted. The US is our single largest market, accounting for over $10 billion in exports, nearly 30% of our industry’s total global trade. A blanket tariff of this magnitude is severely devastating for the sector.”“There is significant dependency on the US market, as 85% of exports from Seepz SEZ, which provides 50,000 jobs, is directed there. For cut and polished diamonds, half of India’s exports are US-bound. With revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain, from small karigars (artisans) to large manufacturers.”“What adds to the concern is that competing manufacturing hubs such as Turkey, Vietnam and Thailand continue to enjoy significantly lower tariffs of 15%, 20% and 19% respectively, making Indian products less competitive in the US market. This imbalance, if unaddressed, could erode India’s long-standing position as a key supplier to the US.”“We are also concerned about the possibility of trade rerouting through low-tariff destinations such as Mexico, Canada, Turkey, UAE or Oman— undermining the spirit of legitimate trade and impacting transparency.”