US Tariffs Dampen Indian Diamond Exports, Air Cargo Drops Below Pandemic Levels
The Wire Staff
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New Delhi: US tariffs on India have dampened the sale of loose diamonds in the US despite an increase in jewellery sales in the country, with market reports indicating a tough time ahead for Indian diamond exports, the Deccan Chronicle reported.
According to a report by market analytics firm Tenoris LLC, finished jewellery sales by US specialty retailers grew 11.6% year-on-year in October while revenue from finished jewellery rose by 14%. Diamond-set jewellery too showed a positive trend with revenues up 9% and average spend per item increasing by more than 15% compared to last year, the report said.
However, the sale of natural loose diamonds declined, with revenues falling by 0.5% year-on-year in October.
Finished jewellery costs rose 17%, while costs for diamond jewellery increased by over 25%, due to tariffs and rising gold prices. The 50% tariff on Indian-origin jewellery imported into the US is being partly absorbed by the supply chain, but consumer prices may increase further, the report said.
Vipul Shah, former chairman of the Gems and Jewellery Export Promotion Council, said the decline in loose diamond sales is affecting Indian exporters. “The exports in October have been quite slow and could be down by 30% during this festive season in the US,” he said.
Between April and September 2025, India’s gross exports of cut and polished diamonds fell by 9.57% in both value and volume compared to the same period last year.
Air cargo down
Meanwhile, freight cargo from India to the US dropped below pandemic levels to 4,319 tonnes between January and June this year. The air cargo movement between the two countries was 7,152 tonnes during the same period last year, the Times of India reported.
Between 2020-23, freight volumes ranged between 5,000 and 9,000 tonnes, the report said. The last time freight volumes fell this low was in 2016, when they reached 3,750 tonnes, it added.
Federation of Freight Forwarders Association representatives told the paper that the US tariffs on India had significantly affected demand, forcing exporters to reduce order sizes.
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