Editor’s Note
**Editor’s Note:** The U.S. and India have finalized a tariff reduction framework under their new trade agreement, eliminating import taxes on gem and natural diamonds into America. However, duties remain at 18% on goods also produced domestically, such as textiles and apparel, while exclusively imported items receive differentiated treatment.
The US and India have reached a framework for their recently announced trade agreement that will see taxes on gem and natural diamond imports into America reduced to 0%.
While the levy will remain at 18% for goods imported into the US that are also produced within the country, such as textiles and apparel, leather, footwear, plastic, rubber and chemicals, items that the US has access to only through importation will be treated differently.
The move follows US President Donald Trump’s social-media announcement last week in which he said he would remove a 25% punitive tax on India and reduce the remaining 25% tariff to 18%.
The agreement does not pertain to lab-grown diamonds.
Additionally, jewelry casting made in the US and sent to India for gem setting or finishing remain US origin and qualify for exemption, with no reciprocal tariff applied on the Indian value addition, the GJEPC added.
Image: US and India flags. (Shutterstock)