US Tariff Increase Sends Shockwaves Through Global Jewellery Markets
In April 2025, the United States enforced a 27% tariff on Indian gems and jewellery imports — a steep jump from previous 0% on cut and polished diamonds and 5.5–7% on gold jewellery. The move is expected to deeply impact trade flows with key suppliers like India and the Kingdom of Saudi Arabia (KSA).
India’s $11 Billion Export Pipeline Under Threat
India, which exports over $11 billion worth of gems and jewellery to the US annually, could see a 30–50% drop in exports, according to the Gem and Jewellery Export Promotion Council (GJEPC). This downturn could potentially impact over 5 million workers in the sector concentrated in cities like Surat, Jaipur, and Mumbai.
For comprehensive regional and product-level insights, read the India Jewelry Industry Insights.
KSA’s $3.4 Billion Market Eyes Policy Risks
The KSA gold and diamond jewellery market, valued at $3.43 billion in 2023, may not be immediately affected, but industry leaders warn of potential policy spillovers. Local manufacturers and exporters are monitoring the trade environment closely for retaliatory shifts.
Deep dive into trends, players, and export dynamics in the KSA Gold and Diamond Jewelry Market Research Report.
US and Global Buyers May Pivot Markets Amid Supply Chain Disruptions
With the US accounting for 30% of India’s total jewellery exports, the impact could be severe and long-lasting. As buyers seek alternative suppliers, India and KSA are exploring new demand hubs such as the UAE, Europe, and Southeast Asia. Meanwhile, the lab-grown diamond segment is gaining momentum as a resilient substitute.
To understand consumer shifts and buying trends, review the updated US Beaded Jewelry Market Trends Report.
Expert Insight: Market Players Call for Urgent Policy Dialogues
“The 27% US tariff is a significant disruptor. It weakens our competitive edge and may shrink market access,”
said Colin Shah, MD of Kama Jewellery and Former Chairman of GJEPC.
With rising pressure, exporters are urging the Indian government to initiate high-level talks and consider support mechanisms such as duty drawbacks or market diversification subsidies.
What’s Next: Adaptation, Automation, and Market Diversification
The road ahead demands faster automation, e-commerce enablement, and geographical diversification. Exporters are pivoting to omni-channel retail and exploring new trade corridors. Key players are also focusing on premium and sustainable jewellery to capture evolved consumer demand.
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