The United States has offered to remove the reciprocal tariff on gems and diamonds upon the conclusion of the interim trade agreement with India, according to the joint statement released by India and the US.
The decision, if implemented, will bring major relief to India’s gems and jewellery sector as the US accounts for about 30 per cent of industry sales.
The joint statement comes on the back of the US commitment to reduce the reciprocal tariffs to 18 per cent on Indian exports from 50 per cent.
“Subject to the successful conclusion of the Interim Agreement, the US will remove the reciprocal tariff on a wide range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gems and diamonds, and aircraft parts,” said the statement.
India’s gem and jewellery exports to the United States witnessed a sharp contraction during April–December 2025, declining 44 per cent year-on-year to $3.86 billion against $6.95 billion in the same period last year.
Last December, exports to the US halved year-on-year due to stiff tariff.
India is the world’s largest cut and polished diamond exporter and counts US as its major market. Besides gold jewellery, India exports lab-grown synthetic diamonds, coloured gemstones, synthetic stone, plain and imitation jewellery and articles of gold, silver and others.
According to government data, India’s diamond exports to the US stood at $5.93 billion in 2023 and declined to $4.88 billion in 2024. The slide has accelerated further in 2025, with exports falling to just $2.42 billion till last September.
Colin Shah, MD, Kama Jewelry said the announcement of zero tariff on gems and diamonds will be momentous and well rejoiced by the Indian gems and jewellery sector.
India being the global hub for diamond processing was impacted severely due to the trade tariffs, where trade had dropped over 60 per cent when it comes to cut and polished diamonds, he added.
The waiver of tariff will help revive exports and reinstate the sparkle in business, he said.
Published on February 7, 2026
