Policies & IssuesDec 03, 2025
Costco Joins Growing Wave of Retailers Suing for Tariff Refunds Policies & IssuesFeb 03, 2026
Tariff Relief on Horizon for India as Trump, Modi Make Deal
President Trump said he has reached a trade deal with India, which, when made official, will bring relief to the country’s diamond industry.
On Tuesday, President Donald Trump posted a statement to Truth Social that he has reached a trade deal with Indian Prime Minister Narendra Modi. The deal, which is not yet official, would decrease the tariff rate on diamond jewelry imported into the U.S. from India to 18 percent from 50 percent, while loose diamonds could be exempt from tariffs entirely.
Washington, D.C.—President Donald Trump announced that he and Indian Prime Minister Narendra Modi have reached a deal that will significantly lower tariffs on Indian goods imported into the United States.
“It was an honor to speak with Prime Minister Modi, of India, this morning … We spoke about many things, including trade, and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote on Truth Social Tuesday afternoon.
“This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 percent to 18 percent.”
As of press time, the White House has not made an official statement on the deal but, if implemented as the president described on social media, it would effectively eliminate tariffs on loose rough and polished diamonds and gemstones imported from India while decreasing the tax on diamond and gemstone jewelry to 18 percent.
The tariff rate on Indian goods entering the U.S. has been 50 percent since August—the 25 percent reciprocal tariff rate announced in July plus another 25 percent the president added via executive order in August because India had been “directly or indirectly importing Russian Federation oil.”
However, in September, following lobbying by Jewelers of America in Washington, D.C., diamonds, natural pearls (though not cultured pearls), gemstones, and other goods that cannot be produced in the U.S. were added to “Annex III,” a list of products that will be exempt from tariffs once the country importing them reaches a trade deal with the U.S., as long as the country includes Annex III in its negotiations.
Related stories will be right here …
“It was an honor to speak with Prime Minister Modi, of India, this morning … We spoke about many things, including trade, and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote on Truth Social Tuesday afternoon.
“This will help end the war in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a trade deal between the United States and India, whereby the United States will charge a reduced reciprocal tariff, lowering it from 25 percent to 18 percent.”
As of press time, the White House has not made an official statement on the deal but, if implemented as the president described on social media, it would effectively eliminate tariffs on loose rough and polished diamonds and gemstones imported from India while decreasing the tax on diamond and gemstone jewelry to 18 percent.
The tariff rate on Indian goods entering the U.S. has been 50 percent since August—the 25 percent reciprocal tariff rate announced in July plus another 25 percent the president added via executive order in August because India had been “directly or indirectly importing Russian Federation oil.”
However, in September, following lobbying by Jewelers of America in Washington, D.C., diamonds, natural pearls (though not cultured pearls), gemstones, and other goods that cannot be produced in the U.S. were added to “Annex III,” a list of products that will be exempt from tariffs once the country importing them reaches a trade deal with the U.S., as long as the country includes Annex III in its negotiations.
This means that if Tuesday’s Truth Social announcement becomes official and India negotiates for the exemption of Annex III-listed goods, the tariff rate on loose diamonds imported from India will be eliminated, with the 25 percent punitive oil-purchasing tariff ostensibly eliminated, and loose diamonds exempt from the remaining 18 percent reciprocal tariff.
In a member alert issued Tuesday afternoon, JA said the agreement will bring “significant relief” to diamond importers.
“Jewelers of America has been following the tariff situation closely for all countries supplying the U.S. market with fine jewelry,” JA President and CEO David Bonaparte said.
“Reaching a trade deal with India is critical to provide relief to the diamond and fine jewelry market in the U.S. We are hopeful it will bring immediate relief to diamond importers, who have been paying a 50 percent tariff on goods since last August. With loose diamonds included on the list of potentially exempt goods under Annex III, we expect that they will be exempt once the deal is considered official and going forward.”
JA noted in its alert that it is not clear when the new tariff rate will go into effect and if importers that have been paying the 50 percent tariff will be eligible for any retroactive refunds.
Early Wednesday, India’s Gem & Jewellery Export Promotion Council (GJEPC) released a statement on the proposed deal, which it said will provide “immense relief” to the country’s diamond jewelry manufacturers.
The U.S. is India’s largest export market for gems and jewelry, accounting for 31 percent of total exports in fiscal year 2024-2025.
The country’s high tax on imports from India has put a strain on companies’ working capital, liquidity, and margins, GJEPC said, leading to a 44 percent drop in gem and jewelry exports to the U.S. between April and December 2025, a trend it hopes to see reversed if tariffs are lowered.
GJPEC Chairman Kirit Bhansali said, “The U.S.-India trade deal offers vital relief to India’s gem and jewelry sector amid U.S. tariff pressures … Tariff cuts lower costs for U.S. importers, provide immense relief to diamond jewelry manufacturers, boost competitiveness of Indian diamond jewelry, revive demand, and stabilize operations.”
GJEPC said it remains in contact with the government as it awaits official word on the U.S.-India trade deal.
Editors' Picks
Sponsored by
More on Policies & Issues
The Latest
SurveysOct 09, 2026
These Will Be the 10 Busiest Days for In-Store Shopping This Holiday SeasonStores should expect to see the most customers on Nov. 27, and Christmas week is expected to be hectic too, as Dec. 25 falls on a Friday.
CollectionsOct 09, 2026
Elisa Solomon Collabs With Serendipity 3 on ‘Frozen Hot Chocolate’ CharmThe charm, our Piece of the Week, features brown diamond frozen hot chocolate topped with white diamond whipped cream and a ruby straw.
AuctionsOct 09, 2026
8-Carat Blue Diamond Goes Unsold at UK Jewelry Auction The top lot of Elmwood’s recent fine jewelry sale in London was a 1.84-carat, D color Tiffany & Co. solitaire diamond ring.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
WatchesOct 09, 2026
Movado to Sell Majority Stake in Ebel for $66.5MThe watch company agreed to sell a 95 percent interest to a group comprised of F.P. Journe, Chanel, and Swiss watch exec Pierre Jacques.
Weekly QuizOct 08, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsOct 08, 2026
Brent Neale’s New Collection Goes ‘Back to Basics’It revisits the brand’s most requested silhouettes, from "Pillow"-set necklaces and bracelets to "Signature"-set rings and earrings.
SourcingOct 08, 2026
Ethical Gem Fair Heads Back to BrooklynThe trade-only event includes buying opportunities as well as educational sessions on artisanal mining, the new Paraíba source, and more.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
Events & AwardsOct 08, 2026
Pattons Fine Jewelry Sweeps Local Design ContestAra Chanakian, a jeweler at Pattons, took home top honors in every category at Jewelers of Louisiana’s annual jewelry design competition.
AuctionsOct 08, 2026
Reba McEntire’s Jewelry, Watches Head to Julien’s AuctionsThe live charity benefit sale in Nashville will also feature gowns, boots, and other memorabilia from the country music legend.
Supplier BulletinOct 08, 2026
Overnight Mountings’ Bridal Builder Helps Jewelers Turn Custom Design into a Hands-On Selling ExperienceSponsored by Overnight Mountings
CollectionsOct 07, 2026
Blue Nile, Royal Asscher Collection Highlights Natural Diamond BeautyBlue Nile, a Signet Jewelers-owned brand, is now Royal Asscher’s exclusive licensed retailer in North America.
CollectionsOct 07, 2026
4 Standout Pieces in Audemars Piguet’s First High Jewelry Collection “Royal Oak” pays homage to the brand’s most popular watch model using 18-karat gold as well as diamonds, emeralds, and sapphires.
MajorsOct 07, 2026
Empire Safe & Vault Promotes Juan Morales to CEOAs part of the transition, Joseph Nicosia has stepped into the role of COO.
SourcingOct 07, 2026
AGTA Extends Deadline for 2026 Spectrum Awards EntriesParticipants now have until Oct. 14 to complete their submissions.
CrimeOct 06, 2026
6 Charged in Connection to String of New Jersey Smash-and-GrabsThe alleged thieves used crow bars and sledgehammers to smash into jewelry stores across the state.
ColumnistsOct 06, 2026
Sherry Smith: Is the Consumer Really Trading Up?Ahead of the holidays, Smith urges jewelers to take a hard look at who’s buying jewelry, what they’re purchasing, and who’s stopped buying.
SourcingOct 06, 2026
DDG Taps Influencers for ‘My Diamond Does Good’ CampaignIn the new consumer-facing campaign, four fashion and lifestyle creators share the stories behind their natural diamond pieces.
MajorsOct 06, 2026
Frederick Goldman Names COO, CMOFGI President John Orrico is also leaving the company after more than 13 years.
Events & AwardsOct 06, 2026
JIS Fall Returns to MiamiThe 2026 edition will feature presentations on alternative materials and design trends, as well as pop-up activations on the show floor.
SourcingOct 05, 2026
De Beers to Take Full Ownership of Gahcho KuéIt is the last fully operational diamond mine in Canada following the recent closures of Ekati and Diavik.
AuctionsOct 05, 2026
The Star Cats of the Sandy Lerner AuctionThese jewels stood out at Bonhams’ sale of the cat-loving tech entrepreneur’s collection of objects depicting the feline form.
CollectionsOct 05, 2026
Sorellina Writes Another Love Letter for ‘Postscript’ CollectionThe fine jewelry brand has expanded the collection that debuted at Couture with four new designs based on its most popular styles.
SourcingOct 05, 2026
Bruce Bridges Joins CIBJO BoardThe AGTA president was elected for a two-year term on the board of directors.
SourcingOct 02, 2026
De Beers, National Geographic Society Renew Okavango Eternal Partnership The partnership, a pledge to protect Africa’s Okavango River Basin, has been extended for an additional five years.
MajorsOct 02, 2026
Pandora Opens New $150M Manufacturing Facility in VietnamThe new facility, its first outside of Thailand, will boost its manufacturing capacity by 50 percent.
TrendsOct 02, 2026
Hearts On Fire Celebrates 30th Anniversary With Heart PendantThe special-edition “Dream” pendant, our Piece of the Week, was created to mark Hearts On Fire’s 30-year milestone with 30 diamonds.
