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New Delhi and Mumbai, India--India's jewelry industry is bracing for a potential collapse in U.S. orders following President Donald Trump's announcement of a 25% tariff on Indian imports, according to a Reuters report.

[Image via iStockphoto.com]

The United States is the largest market for Indian gems and jewelry, accounting for about one-third of the country's $28.5 billion in annual exports. Per the report, shipments of cut and polished diamonds fell to their lowest level in nearly 20 years in the 2024/25 fiscal year, hit by subdued demand from both U.S. and Chinese buyers.

Industry representatives say the new tariffs could exacerbate the downturn. "A blanket tariff of this magnitude will inflate costs, delay shipments, distort pricing, and place immense pressure on every part of the value chain — from lower-level workers to large manufacturers," said Kirit Bhansali, chair of the Gem & Jewellery Export Promotion Council (GJEPC), per the report.

Jewelry exporters warn that the timing is particularly damaging, with the U.S. holiday season approaching. Many are urging the Indian government to secure a trade deal before September to prevent further losses. "Without a trade deal, exports won't recover," one Surat-based diamond exporter told the outlet. "We’ll be forced to cut production and jobs."

The report noted that India's jewelry exporters had been counting on a stable tariff regime to sustain orders from major U.S. buyers. With higher duties in place, they fear business could shift to competing markets with lower U.S. import tariffs.

Learn more in this Reuters report.