India’s exports to the United States continue to suffer under the impact of steep tariffs, with the gems and jewellery sector emerging as the worst hit.
Following the imposition of 50 percent tariffs by the Donald Trump-led US administration, gems and jewellery exports to the US have seen a sharp fall of nearly 70 percent since September.
Shipments from the sector had already declined by 34 percent between April and August, but the downturn deepened significantly in the months that followed. Data from CareEdge shows exports dropped by 69.7 percent after the tariffs came into force, compared to a 33.9 percent decline in the April–August period.
The long-term trend also reflects a steady erosion of the sector’s role in overall exports.
Gems and jewellery accounted for 15 percent of India’s merchandise exports in FY13, but this share has fallen to 7 percent in FY25. Exports to the US have seen a similar slide. In 2012, gems and jewellery made up 18.5 percent of India’s total exports to the US. That figure has now dropped to 11.5 percent.
Readymade garments have also been severely affected. The decline in garment exports to the US widened to 31.1 percent after September, according to the same report.
The Gem and Jewellery Export Promotion Council had earlier flagged the slowdown to the commerce ministry. It reported that both exports and imports of gems and jewellery fell in October 2025 on a year-on-year basis. Exports from the sector declined sharply by 30.57 percent compared to October 2024, while imports dropped by just over 19 percent.
Industry officials attributed the October slump to tariff-related uncertainty and changes in the timing of pre-orders. These pressures have added to existing challenges such as rising labour costs, increasing competition from newer global markets, and the impact of a weaker rupee against the US dollar.