The United States is the largest export destination for India’s diamond and jewellery sector, accounting for more than 40% of total shipments.
But in 2025, new US tariffs on imported jewellery are set to reshape trade flows — and Indian exporters need to prepare.
📊 1. Understanding the US Tariff Changes
The new policy increases import duties on several categories, including:
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Finished gold jewellery
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Diamond-studded jewellery
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Loose polished diamonds
While the tariff hike is aimed at protecting US-based manufacturers, it impacts Indian exporters competing in the American luxury and bridal market.
🇮🇳 2. How It Affects Indian Exporters
a. Higher Landed Cost in the US
Products from India will be more expensive for US retailers to stock, potentially reducing orders.
b. Shift in Buying Preferences
US buyers may:
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Source more from tariff-exempt countries
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Negotiate harder on pricing with Indian suppliers
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Focus on lab-grown diamonds where margins allow more flexibility
c. Pressure on Margins
Exporters may absorb part of the tariff impact to remain competitive — squeezing profitability.
🌱 3. Why Lab-Grown Diamonds Could Gain an Edge
Lab-grown diamonds — especially CVD diamonds made in India — may weather the tariff storm better due to:
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Lower base cost compared to natural diamonds
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Rising US consumer demand for ethical, affordable alternatives
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Ability to offer larger stones and creative designs at competitive prices
In fact, Indian lab-grown diamond exports have grown by double digits year-on-year, even amid market slowdowns.
✅ Explore lab-grown diamond collections
📈 4. Strategic Moves for Exporters
| Strategy | Benefit |
|---|---|
| Focus on Lab-Grown Categories | Compensates tariff impact with better value proposition |
| Strengthen US Retail Partnerships | Build loyalty despite price changes |
| Explore E-Commerce Channels | Direct-to-consumer sales can bypass traditional middlemen |
| Diversify Markets | Target Europe, Middle East, and Asia alongside US exports |
🧠 5. The Bigger Picture
While US tariffs create short-term challenges, they also highlight the need for agility in India’s jewellery export strategy.
Brands that can pivot — offering lab-grown options, custom design services, and competitive online retail pricing — will remain resilient.
🎯 Final Word
Indian diamond and jewellery exporters have always adapted to global market shifts.
In 2025, lab-grown innovation, online expansion, and market diversification will be key to thriving despite US tariff changes.
💬 Looking to Source Lab-Grown Diamonds from India?
Partner with Xazina for:
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IGI-certified CVD diamonds
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Custom jewellery manufacturing
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Competitive export pricing
