The gold jewellery sector is facing a potential crisis after reports emerged that the United States is set to impose a 50% tariff on imported gold jewellery. Industry leaders warn that such a steep hike could cripple exports, disrupt global supply chains, and push prices higher for consumers.

The U.S. is one of the largest markets for gold jewellery exports from countries like India, Italy, and Turkey. A tariff of this magnitude could slash competitiveness and redirect trade flows entirely.

💬 Industry Reactions

Ramesh Kothari, President of the All India Gems & Jewellery Export Council (GJEC), expressed deep concern:

“A 50% tariff is unprecedented in our sector. It will directly impact artisans, exporters, and small businesses that depend on U.S. demand. We’re urging urgent government intervention.”

📊 Economic Impact

If implemented, analysts estimate:

• Export volumes could drop by 35–45% within a year

• Job losses in jewellery manufacturing hubs may rise significantly

• Prices for U.S. consumers could increase sharply due to limited supply and higher import costs

🌍 A Global Ripple Effect

The U.S. tariff hike would not only hit exporting nations but also impact global gold demand.
Key consequences could include:

• Shift in trade focus towards Middle East & Asian markets

• Increased domestic sales in exporting countries as overseas demand dips

• Potential downturn in gold refining and allied industries

🔍 The Political Angle

Trade experts suggest the move could be part of a broader U.S. protectionist policy, aimed at boosting domestic jewellery production and reducing reliance on imports. However, critics argue that American jewellery makers still depend heavily on imported raw gold and craftsmanship.

🛠️ Possible Industry Responses

The gold jewellery sector is exploring strategies to mitigate losses:

• Lobbying for tariff exemptions or reduced rates through diplomatic channels

• Expanding into alternative export markets

• Boosting online direct-to-consumer sales to bypass some trade barriers