Synopsis: A new 25 percent US tariff on Indian imports has put India’s jewelry export sector under severe stress. With $9.9 billion worth of exports at stake and fears of over one lakh job losses, industry insiders warn of a crisis, especially for handmade jewelry. Many are now pinning their hopes on the upcoming India-US trade talks to ease the blow.
US tariffs may put over one lakh jobs in India’s jewelry industry at risk.
It is reportedly looking bad for India’s gem and jewelry sector right now. The United States has announced a 25 percent tariff on Indian imports starting August 1. Last year, India exported nearly 9.9 billion dollars' worth of jewelry to the US, so this move is not small at all. People in the industry are worried that this could hit handmade jewelry exports the hardest. There is talk that these products might no longer find buyers in the US if the cost goes up too much.
What makes it even more concerning is that a similar situation happened before when a 10 percent tariff was imposed. Back then, around fifty thousand people were suspected to have lost their jobs. If the new tariff creates a bigger impact, over one lakh jobs could be on the line this time. For a sector that depends so heavily on exports, that would be a serious blow.
The U.S. remains one of the largest markets for Indian gems and jewelry. And this sudden decision adds another layer of uncertainty. The industry has already been under pressure for the last two years due to global tensions, conflicts in Russia, Ukraine, and the Middle East. Now, with the new tariff in place, many fear that trade activity with the United States will slow down significantly.
Despite the worry, there is still some hope. The upcoming sixth round of India-US Bilateral Trade Agreement talks is scheduled at the end of August. Many are looking at these discussions as a chance to ease the situation or reach a deal that protects the jewelry industry from severe damage.
From my own point of view, this whole situation feels like watching a slow storm build over an industry that so many families depend on. A tariff like this does not just mean higher costs; it ripples into real lives, into the small workshops where people sit for hours shaping delicate pieces by hand. I keep thinking about how we already saw what happened last time, when the tariff was only ten percent and still thousands of jobs slipped away. Now, with a twenty-five percent hike, the worry is heavier. It is not just numbers or trade figures on paper; it is the uncertainty that gnaws at everyone working in this line, wondering if orders will dry up or if shipments will just stop moving. And it comes at a time when the industry has been stumbling under so many outside pressures already, from conflicts abroad to markets slowing down. To me, it feels like the sector is standing at a cliff edge, waiting for some balance to return, hoping the upcoming trade talks can throw even a small lifeline before more livelihoods are swept away.
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