Editor’s Note
**Editor’s Note:** This piece examines the practical implications of the new U.S.–India trade agreement for American jewelers, cutting through the geopolitical hype to focus on sourcing realities, tariff impacts, and the cautious optimism for supply chain stability.
Zero-duty natural stones, lower jewelry tariffs, and renewed supplier confidence are on the horizon — but retailers shouldn’t expect overnight changes.
The new U.S.–India trade agreement is being talked about as a big win for the global diamond and gemstone trade — but for U.S. jewelers, the real story is less about geopolitics and more about whether sourcing will finally feel normal again.
For months, tariffs have been a moving target, sending costs higher, slowing delivery times and forcing suppliers to reroute production through third countries just to make the math work. The latest agreement promises relief, particularly for natural diamonds and gemstones cut in India, though much of that relief hinges on an interim agreement that still needs to be finalized — which, according to India minister of commerce and industry Piyush Goyal, should happen sometime in March.
India’s Gem & Jewellery Export Promotion Council (GJEPC) has been vocal about how damaging those tariff swings have been. The U.S. is India’s largest jewelry export market, accounting for roughly a third of total gem and jewelry exports. When duties began climbing in 2025, trade slowed quickly. According to GJEPC, exports to the U.S. fell more than 44% between April and December, with polished diamond exports alone dropping over 60%.
For finished jewelry manufacturers, tariffs haven’t been the only pressure point. Sweta Jain, founder, designer, and owner of Goshwara, says the past several months have been extremely challenging, with rising duties colliding with record gold prices.
Disha Shah, founder and designer for DiAi Designs, agrees, and says the new deal could actually be a boon to India’s lab-grown diamond sector as well:
Even with the agreement in place, finished jewelry remains more complicated than loose stones. Indian-made jewelry is expected to carry a duty of roughly 24% once the interim agreement is signed — 18% plus the longstanding 6% Most Favored Nation (MFN) duty. One key exception remains: jewelry cast in the United States continues to be considered U.S.-origin, even if stones are set and finishing is completed in India.
Manish Kala, proprietor of Kanchan Gems & Jewellery, sees the agreement as a positive signal for long-term growth.
For colored stone suppliers, the agreement could unwind years of tariff-driven detours. Yash Dhamani, owner of National Facets, says when duties briefly surged toward 50%, Indian suppliers were forced to find alternative routes just to stay competitive.
Those workarounds often meant gemstones cut in India were shipped to Bangkok for jewelry manufacturing, then sent on to the U.S. because duties there were lower. With India now expected to land at an 18% rate for jewelry — and zero for unset natural stones — Dhamani believes the incentive to detour is disappearing.
Dhamani says that renewed optimism is already showing up at trade events.
GJEPC Chairman Kirit Bhansali says that confidence is exactly what the sector needs right now. He believes the agreement will lower costs for U.S. importers, provide relief to manufacturers, and help stabilize operations across the value chain. GJEPC remains optimistic that loose diamonds and colored gemstones from India will qualify for zero-duty entry once the interim agreement is finalized, though the council says it is still awaiting detailed notifications.
– Some suppliers are carrying goods purchased under higher tariffs, and pricing may normalize gradually rather than all at once.