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USIndia Tariff Deal Eliminates Duties on Diamonds and Gemstones, Reopening a Major Export Path

Jewellery remains taxed, prompting calls to include it in the next round of talks.

Overview

  • Under Section 3 of the agreement, diamonds and gemstones now enter the US at zero duty, a change industry groups describe as a major boost to market access.
  • Dinesh Lakhani of Kiran Gems and Rajiv Jain of Sambhav Gems say the move helps revive exports that had been badly hit, with more than half of US-bound shipments previously stalled.
  • Avinash Gupta of the GJC notes jewellery still attracts about 24% duty and urges negotiators to bring finished pieces under the zero-duty framework in future rounds.
  • Exporters report US retailers are reopening sourcing channels to India, and one industry projection suggests shipments to the US could nearly double versus the past 18 months.
  • The relief is expected to support India’s cutting and polishing hubs, with Surat’s artisans and Jaipur’s gemstone exporters reporting renewed enquiries and fresh orders.