The Gem & Jewellery Export Promotion Council (GJEPC) called on the US government to reduce tariffs on Indian gem and jewellery imports, as Washington has decided to maintain the additional 10% tariff on exports effective July 24, 2026.
The revised tariff system is the result of an investigation by the Office of the US Trade Representative (USTR) into compliance with bans on imported goods produced using forced labour in 60 countries. Under the new regime, India was placed in the bottom 10% of the tariff list on the grounds of forced labour allegations, while several competing manufacturing and trading hubs, including China, Hong Kong, Thailand, Turkey, the UAE, Israel, and Vietnam, faced an additional 12.5% tariff. The continued existence of the 10% duty remains a concern for Indian gem and jewellery exports, especially in the natural diamond category, the GJEPC said.
“We categorically reject any implication that India’s gem and jewellery sector is linked to forced labour,” said GJEPC Chairman Kirit Bhansali. “We also welcome the Government of India’s recent amendment to the Foreign Trade Policy that bars the import of goods produced, wholly or partly, with forced labour - an important step that reinforces India’s commitment to human rights and aligns our trade rules with internationally accepted labour standards.”
According to the association, jewellery exports to the US will continue to be subject to the existing most-favoured-nation (MFN) duty of 5.5% - 6%, in addition to the 10% tariff under Section 301, increasing the effective import duty to approximately 15.5% - 16%.
The Council also noted that lab-grown and synthetic diamonds continue to be subject to additional duties, while natural diamonds imported through the European Union remain exempt from the additional duty, widening the competitive gap for Indian exporters.
The Council stated that it is negotiating with the Indian government to conclude a bilateral trade agreement between India and the United States as soon as possible, and reaffirmed that natural diamonds and coloured gemstones should be exempt from the additional duty.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
