US tariff blow stuns gem and textile sectors
The industry was expecting an extension of the tariff deadline, but the announcement has now cast uncertainty over trade commitments made earlier this year. "Manufacturing for orders booked during the June 2025 JCK Las Vegas exhibition is already underway. These orders may now be blocked due to the new tariff and penalty," said Amit Korat, president of the Surat Jewellery Manufacturers Association (SJMA).
The Las Vegas show, known as the world's largest jewellery exhibition, typically generates fresh business for manufacturers worldwide for the next seven to eight months.
However, the latest US tariff decision is expected to put the already struggling diamond trade under significant pressure.
"The announcement is not yet official, and we are waiting for a notification to come. We hope that there will be a reduction in the tariff considering the overall market conditions," said a Gem and Jewellery Export Promotion Council (GJEPC) official.
"It is going to hurt severely if the announced tariff and penalty come into force.
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The US is the largest market for polished diamonds in Surat, and our industry will be under tremendous pressure," said a leading diamond manufacturer.
Leaders in the textile sector are concerned about rising export costs and declining demand. "Exporters are already getting calls to put textile and garment shipments to the US on hold. These were orders scheduled to be dispatched soon," said an official from the Manmade and Technical Textiles Export Promotion Council (MATEXIL).
"With a 25% price hike, the end consumer in the US is unlikely to buy, and no fresh orders are expected for some time.
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The US is a key market for India's home textile exports, and the sudden tariff announcement has caught the industry off guard. "Business was proceeding as usual until today. Exporters were receiving inquiries as recently as last week. We had hoped the tariff implementation would be delayed, allowing time for further discussions," said an industry official.
Textile manufacturers from the city were hoping for better business opportunities with the US since there is already a higher tariff rate for China. "But now, with a 25 percent tariff and penalty, the situation has become challenging for Indian textile exporters as well. The countries where the tariff is lower are at an advantage," said Vijay Mevawala, former president, Southern Gujarat Chamber of Commerce and Industry (SGCCI).
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There's a possibility of lower export demand in the country (India) where the tariffs are imposed, since their goods have become relatively more expensive in the importing country (US).
