Tariff Tensions: Impact on India's Gems and Jewellery Sector

The US has imposed a 27% reciprocal tariff on Indian gems and jewellery, affecting exports. The Gem and Jewellery Export Promotion Council (GJEPC) calls for government intervention to address the tariffs and ensure long-term sector growth. The tariff decision may reshape global supply chains and impact US economy.

The announcement of a 27% reciprocal tariff by the United States on Indian gems and jewellery has caused concern among Indian exporters. The Gem and Jewellery Export Promotion Council (GJEPC) has labeled the move as a major setback and urged the Indian government to safeguard the sector's interests.

The tariffs are a response to India's high import duties on American goods. The US imports $11.58 billion worth of gems and jewellery from India annually. The implementation of these tariffs may reshape global supply chains and poses a challenge for sustaining India's current $10 billion export volume to the US.

Experts warn that these tariffs could negatively affect American consumers and the US economy as well, potentially leading to inflation. It remains to be seen how negotiations between the countries might address these concerns in the future.

(With inputs from agencies.)