Exports to the US Continue to Suffer Due to Tariffs, Gems and Jewellery Sector Worst Hit

New Delhi: In wake of the 50% tariffs imposed by the president Donald Trump-led US administration, gems and jewellery exports to the US has registered a 70% drop in shipments since September. Earlier, between April and August it had seen a 34% decline which increased in subsequent months, reported Deccan Chronicle.

Overall, the gems and jewellery sector’s contribution to merchandise exports has decreased from 15% in FY13 to 7% in FY25.

After the imposition of the 50% tariffs, exports fell 69.7%, while between April and August the decline was 33.9%, reveals CareEdge. Back in 2012, the share of gems and jewellery shipments in the total exports to the US was 18.5%, which has now fallen to 11.5%.

Another sector that is severely hit is that of readymade garments, with the decline in exports increasing to 31.1% after September, said the Deccan Chronicle report.

Earlier, industry body Gem and Jewellery Export Promotion Council (GJEPC) had informed the ministry of commerce that India’s exports as well as imports of gems and jewellery fell in October 2025. The fall has been recorded on a year-on-year basis, which means that the comparison is with October 2024, and removes most seasonal effects.

The GJEPC, set up under the ministry of commerce as the apex body for the sector, has recorded a steep fall of 30.57% in gems and jewellery exports in October 2025. Imports fell just over 19% over October 2024, it had said in November.

The October decline can be explained by tariff-related uncertainty and shifts in timing of pre-orders. All of these factors and more impacted a sector already affected by rising labour costs and competitive pressure from newer and more innovative global markets – apart from the fall in the value of the rupee compared with the dollar.

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