Donald Trump doubles tariffs on India: Gems & jewellery industry calls it 'doomsday'; looks to shift manufacturing to low tariff nations like UAE
US President Donald Trump's decision to double tariffs on Indian imports to 50% has alarmed the Indian gem and jewellery industry, which is now looking at setting up manufacturing units in low-tariff countries like UAE and Mexico to continue exporting to the US.
Calling the move a "doomsday" for the sector, Gem & Jewellery Export Promotion Council (GJEPC) Chairman Kirit Bhansali told ET that, "We will reroute our products through other countries after studying the tariff structure of that country with the US. We will set up manufacturing units there quickly."
"Dubai is the nearest destination for us. We will also look into rerouting studded jewellery through Mexico, if required.
However, we will do everything legally," Bhansali added.
By comparison, the United Arab Emirates faces only a 10% tariff, while Mexico is subject to a 25% duty, significantly lower than India's new rate.
US is India's largest market for polished diamonds and studded jewellery worth $10-billion as of 2024–25.
Titan Company, one of India's largest jewellers, is reportedly considering relocating some of its manufacturing to the Middle East to maintain access to the US market under lower tariffs.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
This Is What Willl Happen To Your Body When You Eat 3 Eggs Every Day
HealthSupportMag.com
Undo
Bhansali further noted that when tariffs were at 25%, exporters were trying to adjust margins to stay competitive. "But now with a 50% duty, it has simply become impossible for us to survive," he added.
In the meantime, a delegation from the US gem and jewellery industry is scheduled to visit India on August 19 to discuss the tariff issue with Indian industry leaders and officials from the commerce ministry, ET reported.
While the new tariffs will hit future exports hard, current shipments already in transit are safe.
"There are no orders from the US now. The little bit orders that we got before August 7 have been shipped," Adil Kotwal, President of SEEPZ Gems and Jewellery Manufacturers Association told the outlet.
SEEPZ in Mumbai hosts 200 exporting units and employs around 1 lakh workers. The industry fears mass disruptions if alternative manufacturing routes are not set up soon.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
20 minutes ago
- Economic Times
Defence production hits record Rs 1.5 lakh crore, private firms' share up
Synopsis India's defence production has surpassed ₹1.5 lakh crore, marking a significant milestone fueled by increased private sector participation. The defence minister highlighted an 18% growth in FY 2024-25, showcasing the strengthening of India's defence industrial base. Defence exports also saw a surge, reaching ₹23,622 crore, reflecting a 12% increase over the previous year. PTI Indian defence production has crossed the ₹1.5 lakh crore mark, with private companies increasing their share in production and export of military systems, defence minister Rajnath Singh said on Saturday. Lauding the collective effort that led to an all-time high figure of defence production worth ₹1,50,590 crore, Singh said that the milestone is a clear indicator of India's strengthening defence industrial base. Officials said that in the 2024-25 FY, there has been an 18% growth over the previous fiscal's output of ₹1.27 lakh crore, and a 90% increase since FY 2019-20, when the figure was ₹79,071 crore. The numbers have been achieved as the government has gone on overdrive to promote Indian companies to enter the sector and has initiated programs like Emergency Procurement (EPs) that have given orders to a large number of startups and smaller companies as well. Defence Public Sector Undertakings (DPSUs) and other PSUs accounted for around 77% of total production, while the private sector contributed 23%. The share of the private sector has been steadily rising, from 21% in FY 2023-24 to 23% in FY 2024-25, and is expected to go up exponentially in the coming years as several big projects have been opened up to competitive bidding. Dozens of companies, from backgrounds as diverse as automobile component manufacturing to civil works have entered the defence manufacturing sector as opportunities grow."Both public and private segments of the industry have demonstrated consistent year-on-year growth, attributed to far-reaching policy reforms, enhanced ease of doing business, and a strategic focus on indigenisation over the past decade," officials said. There has been a surge in defence exports as well, with the figure growing to ₹23,622 crore in FY 2024-25, a 12% growth over the previous year.
United News of India
an hour ago
- United News of India
Trump Tariff brings down Tata Motors Q1 FY26 net profit by 30 pc to Rs 3,924 crore
Mumbai, Aug 9 (UNI) Tata Motors has officially announced that it has posted a 30 per cent decline in its Q1 FY26 net profit of Rs 3,924 crore from the Rs 5,643 crore net profit reported in the same period last year. Tata Motors stated that its performance was impacted by decline in profitability primarily from its Jaguar Land Rover business, besides volume decline in all businesses. The company stated that US President Donald Trump's tariff impacted revenues from Jaguar Land Rover which declined by more than 9 per cent to £6.6 billion (UK pound sterling). Significantly, the United States is Jaguar Land Rover's most important export market, accounting for nearly a quarter of its sales. Operating profit from Jaguar Land Rover slipped by 49 per cent to 351 million pounds or Rs 4,130 crore in Q1FY26. Revenue at Jaguar Land Rover, which was acquired by Tata Motors in June 2008, also decreased by 10 per cent to 6.6 billion pounds or Rs 77,662 crore after it had to stop exports to the United States for nearly a month in April in response to tariffs imposed by US President Trump and phased out older Jaguar models primarily made in the United Kingdom (UK). However, despite the fall in revenue, Jaguar Land Rover has kept its guidance range for FY26 unchanged at 5 to 7 per cent. "Welcomed signing of UK-US trade deal to reduce tariffs on UK-produced vehicles exported to the US from 27.5 per cent to 10 per cent, effective from June 30, 2025. EU-US trade deal announced on July 27, 2025 will, in due course, reduce tariffs on Jaguar Land Rover's European Union-made vehicles exported to the US from 27.5 per cent to 15 per cent," the company stated. The revenue of Tata Motors from operations dropped by 2.5 per cent year-on-year to Rs 1.04 lakh crore in Q1 FY26, from Rs 1.07 lakh crore in Q1 FY25, while EBITDA declined 36 per cent year-on-year to Rs 9,700 crore. The company's commercial vehicle revenues declined by 4.7 per cent to Rs 17,000 crore, while EBITDA margins improved to 12.2 per cent, due to better realisations and cost savings despite lower volumes. Revenues from passenger vehicles declined by 8.2 per cent, reflecting decreased demand and transition to newer models. UNI XC BM
Time of India
an hour ago
- Time of India
GVMC to complete 24X7 water project by Dec 31
Visakhapatnam: The Greater Visakhapatnam Municipal Corporation (GVMC) has targeted Dec 31 as the deadline for the completion of the ongoing 24x7 potable water supply project in north-west part of Visakhapatnam city, funded by the Asian Development Bank (ADB). Although the project is already operational in the Madhavadhara, Muralinagar, and Marripalem areas, providing around 5,000 potable water connections, some work remains pending and must be completed to ensure an uninterrupted water supply to the public. GVMC commissioner Ketan Garg, accompanied by water supply department engineers, inspected and reviewed the progress of the project in the Visakhapatnam north-west sector of Madhavadhara, under Zone-V. During this review, the commissioner directed the GVMC superintending engineer KVN Ravi to ensure that all pending work is immediately completed by the contractor. He clearly set the deadline for full completion as Dec 31. The commissioner said that bills should be prepared for existing customers based on their actual water consumption. He instructed the concerned officials to make the necessary technical arrangements to record these bills in the ERP module and recommended issuing sample (dummy) bills in advance to raise customer awareness. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A 9-Minute Workout for a Flat Belly and Smaller Waist whophone Undo Furthermore, Garg asked superintending engineer Ravi to analyse the difference in water consumption between the new 24x7 supply system and the previous conventional supply method to better understand usage patterns. The review meeting included executive engineers Yedukondalu and Muralikrishna, deputy executive engineer Satish, assistant engineers Raj Kumar and Suman, deputy general manager of Nagarjuna Construction Company Rangarao, and other officials. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area. Get the latest lifestyle updates on Times of India, along with Raksha Bandhan wishes , messages and quotes !
