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US tariff hike likely to hit Rajasthan's gems and jewellery sector

Jaipur Sarafa Committee Chairman Kailash Mittal said that Rajasthan's jewellery traders are surprised by the tariff move but not overly worried Jaipur Rajasthan's gems and jewellery sector is likely to be hit by the US decision to increase tariffs, trade experts said. The state, especially Jaipur, is known for its coloured gemstones and diamond-studded jewellery. US President Donald Trump has imposed a 50 per cent tariff on goods imported from India. In this scenario, gems and jewellery traders in Rajasthan have begun scouting for new markets to offset the loss, experts added. According to trade estimates, the state exported gems and jewellery worth over ₹17,675 crore in 2024–25 (FY25), of which around ₹3,154 crore went to the US. Jaipur's jewellery exporter Vijay Chordia said after Trump's announcement, the biggest impact in the state will be on the gems and jewellery business. All the orders will have to be put on hold. 'Under these circumstances, Rajasthan's gems and jewellery exporters have started looking for new markets, but it will take some time,' he added. There are many untouched markets around the world. Preparations to enter such markets have already begun, he said, adding that the fall in exports to America can be compensated for, but it will require some time. 'It is for sure that US tariffs have affected our businesses at least for some time,' he said. Jaipur Sarafa Committee Chairman Kailash Mittal said that Rajasthan's jewellery traders are surprised by the tariff move but not overly worried. 'Although there is a good demand for Indian jewellery in America, it is still to be seen whether they (consumers) will buy at higher prices because of the tariff or whether we will see reduced demand,' Mittal said. US imports products like marble, granite, engineering and manufacturing goods, handicrafts, gems and jewellery, garments and textiles from Rajasthan. This export is worth about ₹18,000 crore annually, which can be seriously affected by the current tariff war. This includes handicrafts worth ₹5,000 crore and textiles worth ₹1,500 crore. If the US tariffs stay, several major export industries of Rajasthan could face a crisis.