US Imposes 50% Tariffs on Indian Gold Jewellery Exports Threatening Industry

The United States has imposed a cumulative 50% tariff on Indian gold jewellery exports, with an initial 25% tariff implemented on August 7 and an additional 25% set to take effect on August 27. Industry leaders, including Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), warn that this tariff hike threatens the competitiveness of Indian jewellery in the U.S. market and endangers the livelihoods of thousands of skilled artisans, many from marginalized communities. The tariff increase risks destabilizing local economies, eroding centuries-old craftsmanship, and pressuring the Indian Rupee, which in turn raises domestic gold prices and dampens local demand. India's gems and jewellery sector, valued at over $40 billion and employing more than 4.3 million people, faces severe economic uncertainty. Meanwhile, the tariff escalation has also boosted global gold prices as investors seek safe-haven assets amid ongoing trade tensions and expectations of U.S. Federal Reserve rate cuts. Experts note that gold is gaining appeal due to tariff uncertainties and a weakening U.S. dollar, further influenced by disappointing U.S. economic data.