The Gem & Jewellery Council (GJC) has expressed concern over the United States' decision to impose a 10% tariff on imports from India, warning that the move could adversely affect the country's gem and jewellery exports to one of its largest overseas markets.

According to the industry body, the additional duty is expected to reduce the price competitiveness of Indian jewellery in the US market, placing pressure on exporters' margins and potentially slowing export growth. GJC said the tariff could also have implications for employment across the sector's manufacturing and export value chain if it remains in force over an extended period.

Rajesh Rokde, Chairman, GJC, said "The U.S. government's decision to impose a 10 per cent tariff on imports from India will undoubtedly create challenges for our gem and jewellery exporters. While the rate is lower than that imposed on some other countries, the measure will place significant pressure on margins and could dent the growth trajectory of the industry."

The United States is among the largest export destinations for India's gems and jewellery industry, making changes to its import duties significant for manufacturers and exporters. While GJC acknowledged that the tariff level is lower than those imposed on some other trading partners, it maintained that the additional cost could still affect India's competitive position in the market.

The development comes at a time when the industry is navigating evolving global trade conditions and looking to sustain export momentum. GJC has reiterated the need for continued engagement between the two governments to minimize disruption to bilateral trade and safeguard the interests of exporters, manufacturers and the workforce dependent on the sector.