Indian Jewelers Worry As Trump's Reciprocal Tariffs Spark Process Loss Fears: Document
The US authorities's decision to levy reciprocal price lists has raised alarms throughout India's gem and jewelry enterprise. America is a primary customer of indian jewelry, so any tariff hike could affect exports.
Key indian exports encompass cut and polished diamonds, studded gold jewelry, plain gold jewelry, lab-grown diamonds, and silver jewelry.
But the toughest-hit sectors could be gold jewelry and diamonds, which are the most important drivers of India's exports.
Presently, india imposes a 20% tariff on gold jewelry from the USA, while the united states imposes a lower obligation of 5.5-7% on indian gold jewelry. Likewise, india imposes a 5% tariff on cut and polished diamonds, even as the USA no longer imposes any tariff on those goods from india, said The Economic Times.
Moreover, the indian gemstones and jewelry enterprise isn't a key driver of the U.S.'s exports but also provides employment to over 1 lakh human beings, specifically women and people from the weaker phase, said a source quoted in the ET file.
If the US decides to raise price lists in reaction, it would have a large effect on indian exports.
Global market demanding situations
For the last few years, India's herbal diamond exports to the united states and china have already been declining thanks to geopolitical challenges like financial slowdowns, the Russia-Ukraine battle, and the Israel-Gaza conflict, as well as financial slowdowns.
With these challenges, the American market remains vital for India's gem and jewelry industry.
Enterprise representatives met Union Trade minister Piyush Goyal to speak about the issue and give an explanation for the dangers involved if reciprocal price lists are imposed. They urged the government to take the necessary steps to protect India's gem and jewelry zone.
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