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
CollectionsJul 17, 2026
HOWL Taps Shailene Woodley for ‘Home Sweet Home’ CampaignWoodley is seen in the campaign wearing our Piece of the Week, the “Frida” collar featuring 13 pieces of hand-carved Venetian glass.
SourcingJul 17, 2026
U.K. Woman Pays £5 for £15K Diamond Ring at Car Boot SaleA WeBuyVintage jewelry expert uncovered how much the flea market find was actually worth.
SourcingJul 17, 2026
Diamond Dealer Jeff Pancis Pens MemoirThe founder of natural colored diamond wholesaler Pancis Gems shares stories from his five decades in the industry.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
Events & AwardsJul 17, 2026
Gem Awards Opens 2027 Nomination PeriodSubmissions for the milestone 25th annual Gem Awards will be accepted across three categories from now through July 31.
Weekly QuizJul 17, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsJul 16, 2026
Q&A: Guzema’s Co-Owners On Its US Expansion, 10-Year AnniversaryValeriya Guzema and Mariana Lenha look back on the last decade and discuss the Ukrainian brand’s first U.S. store.
SourcingJul 16, 2026
Ekati to Close, Leaving Canada With One Diamond Mine The diamond mine, which opened nearly 30 years ago in Canada’s Northwest Territories, is expected to shut down by mid-August.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
FinancialsJul 16, 2026
Richemont’s Jewelry Sales Soar for the Seventh Quarter in a RowJewelry sales for the company, which owns Cartier, Van Cleef & Arpels, Vhernier, and Buccellati, rose 21 percent in the first quarter.
Events & AwardsJul 16, 2026
MJSA Mentor & Apprenticeship Program Certifies First Advanced Apprentice GraduateThe graduate, Grace Barden, credited the program with helping her secure a job as a bench jeweler.
Events & AwardsJul 16, 2026
Jewelers of Louisiana to Host 80th ConventionThe event, scheduled for next month in New Orleans, will include dinner, a custom jewelry design contest, and education sessions.
SourcingJul 15, 2026
1,305-Carat Diamond Recovered from Mine in BotswanaThe yet-to-be named stone is the 10th diamond weighing more than 1,000 carats to come out of Lucara’s Karowe mine.
IndependentsJul 15, 2026
New Jersey Jeweler Barry Berman Dies at 81The founder of Fords Jewelers, Berman is remembered for his love of connecting with his community.
FinancialsJul 15, 2026
Watches of Switzerland’s US Sales Jump 18%, Declines to Comment on Sale Report The watch and jewelry retailer had a strong fiscal year despite what its CEO described as a “complex operating backdrop.”
Events & AwardsJul 15, 2026
Hamptons Jewelry Show to Return in JulyThe open-to-the-public luxury jewelry and timepiece show, in its second year, is slated for July 23-26.
CollectionsJul 15, 2026
Pomellato’s New High Jewelry Is LiberatingBold color, expressive gem-setting, and sculptural form define the three chapters that make up “Stile Libero.”
IndependentsJul 14, 2026
Foundrae Opens First Standalone Store Outside USThe New York-based jewelry brand has expanded overseas, opening a store in London’s Mayfair district.
ColumnistsJul 14, 2026
Sherry Smith: What Today’s Jewelry Consumer Is Telling Us Rising revenue does not automatically mean a healthy business, particularly in the current economic landscape, Smith writes.
TrendsJul 14, 2026
Amanda’s Style File: Shoulder Dusters These long, fluid drop earrings are sure to catch the eye.
CrimeJul 14, 2026
Man Charged in $1M Jewelry Store Heist Lands on FBI Most Wanted ListAlberto Perez-Elias is one of four men charged with robbing a Cape Coral, Florida, jewelry store and is the only one still at large.
Events & AwardsJul 14, 2026
Conference on Mining, Sustainability Kicks Off in NYCInitiatives in Art and Culture is hosting its 16th annual Gold and Diamond Conference, with the theme of “Resilience.”
Lab-GrownJul 13, 2026
Stephanie Gottlieb Changes Her Mind on Lab-Grown DiamondsThe designer, who once said she’d never sell lab-grown diamonds, debuted two capsule collections designed to be fun and easy to wear.
SourcingJul 13, 2026
De Beers Announces Potential Layoffs, 2-Year Production Pause at VenetiaThe diamond miner and marketer is undergoing another round of cost-cutting measures ahead of its sale by Anglo American.
Events & AwardsJul 13, 2026
Registration Opens for JIS Fall 2026 ShowThe annual trade-only buying event is slated for Oct. 16-19 in Miami Beach, Florida.
Events & AwardsJul 13, 2026
AGTA Accepting Entries for Spectrum 2026AGTA also has announced the lineup of judges for the colored gemstone cutting and jewelry design contest’s various categories.
TechnologyJul 10, 2026
There’s a New Blind Box for Luxury Watches Collectibles platform Arena Club’s new Time Boxes could contain a Rolex or Patek Philippe watch.
TrendsJul 10, 2026
Jade Trau Creates a Constellation of DiamondsThe “Constellation Plié” collar, our Piece of the Week, features diamonds arranged in a constellation of shining stars.
