The move is aimed at leveling what he called an “unfair” trade imbalance. The 52% figure cited by Trump is not a uniform rate, but an average tariff across various sectors. In contrast, the newly proposed 26% tariff by the U.S. is being pitched as a moderated, yet firm response.

Impact on the Jewellery Sector:

India’s tariffs on U.S. jewellery imports currently range from:

• 5% on polished diamonds

• 20% on gold, silver, and platinum jewellery

On the other hand, Indian jewelry exported to the U.S. currently faces:

• 0% duty on loose diamonds

• 5.5% to 7% on gold jewellery

With the new 26% tariff policy, Indian jewellery exports to the U.S. could soon face substantially higher duties, potentially matching India’s existing 20% rate on similar imports from the U.S.

The announcement could significantly affect India’s $11.5 billion gem and jewellery exports to the U.S., which is currently its largest market in the sector. Indian exporters and industry bodies are closely monitoring the developments, as the implications could ripple across pricing, demand, and trade relationships.