US Tariff Hike on Indian Gold Jewellery Exports Threatens Industry and Jobs

Surat, Gujarat — In a devastating blow to India’s gems and jewellery sector, the United States has imposed a 50% tariff on gold jewellery exports from India, with 25% already implemented from August 7, and an additional 25% set to take effect on August 27. Industry leaders have called the move a “compounded shock” that could cripple exports and displace thousands of skilled workers across the country.

The United States (US) remains one of India’s largest export markets for gold and handcrafted jewellery. However, this steep tariff increase has rendered Indian products economically unviable compared to competitors from countries with lower trade barriers.

“The imposition of a 25% tariff on Indian gold jewellery exports—already in effect—and the additional 25% set to be enforced from 27th August represent a compounded blow to the sector,” said Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC).

“This escalation not only undermines our competitiveness in the U.S. market, but more importantly, jeopardizes the livelihoods of thousands of skilled artisans—many from marginalized communities—who are the backbone of India’s jewellery ecosystem.”

India’s gems and jewellery sector, valued at over $40 billion, employs more than 4.3 million people, with a large percentage engaged in traditional handcrafted work. These include artisans operating in small workshops and family-run businesses, who now face severe economic uncertainty due to the collapsing demand from the U.S.

“We are staring at widespread job losses and destabilization of entire local economies. The impact is not just commercial—it’s cultural. We risk losing centuries-old techniques and artistry that define Indian jewellery,” Rokde warned.

The Vice Chairman of GJC, Avinash Gupta, echoed the alarm, “This tariff shock is also pressuring the Indian Rupee, making gold imports costlier for domestic buyers and dampening internal demand. We urge the government to act swiftly and enter into urgent trade negotiations that safeguard jobs, stabilize macroeconomic impact, and protect India’s global leadership in handcrafted jewellery.”

Early trade data from July already indicates a sharp decline in export orders, especially from small exporters who cannot absorb the added cost burden or shift supply chains quickly. Industry associations fear that the August 27 hike will cause a drastic fall in orders during the critical festive and wedding seasons, historically high points for exports.

With livelihoods, heritage, and market leadership at stake, stakeholders are calling for immediate diplomatic intervention and tariff relief talks at the highest level.

If no resolution is found, experts warn that India’s centuries-old dominance in fine jewellery craftsmanship could face irreversible decline, with millions pushed into unemployment.