The United States and India have reached a framework for an interim trade agreement that will eliminate tariffs on natural diamonds and gemstones imported from India, a move expected to provide significant relief to the global jewellery industry.
According to a joint statement released by the White House last week, tariffs on cut and polished natural diamonds, coloured gemstones, and natural pearls will be reduced to zero percent once the interim deal is formally signed — a step Indian officials expect to occur in March 2026. The agreement, however, excludes lab-grown diamonds, which will continue to face an 18-percent tariff.
The interim deal follows president Donald Trump’s announcement that the United States would cut its reciprocal tariff on Indian imports from 25 percent to 18 percent, and remove an additional 25-percent penalty imposed in August as retaliation for India’s purchase of Russian oil.
In return, India will reduce or remove tariffs on a wide range of US industrial and agricultural products, including tree nuts, soybean oil, dried grains, and wine.
Industry groups such as the Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the development, saying it would enhance India’s competitiveness in the American market and boost exports once the tariff removal takes effect.
23-02-2026
← Back