Rajasthan News: Jaipur Jewelers Hit Hard As US Imposes 50% Tariff On Gems & Jewelry Exports

The Gopal Ji Ka Rasta in the famous Johri Bazar of Jaipur looks crowded and busy as usual, but the jewelers sitting in the offices of this age-old street of gems and jewelry businesses and the owners of studded jewelry manufacturing units in the Special Economic Zone of the Sitapura industrial area are looking furious and tense after the imposition of 50% tariff from the US on gems and jewelry exports

These exporters of the famous Kundan polki sets embellished with meenakari, beads, baubles, colored gemstones, and precious stones, who usually at this time used to be busy completing the Christmas orders, are now exploring new markets and setting up new business ties, as the Trump tariff has impacted well over 50 percent of exports of gems and jewelry from the Pink City with the halting and canceling of orders from the US.

Jaipur’s annual jewelry and gemstone exports to the US are valued at approximately Rs. 3,200 crore, forming a significant part of the region’s Rs. 18,000 crore export economy.

The industry insiders said that jewelry manufacturing in Jaipur is the most cost-effective in the world after China, and this is why Jaipur is a hub for ornaments and jewelry exports.

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Ajay Godha, the Joint Secretary of the Jaipur Jewelers Association, said that the US was the most prominent buyer of gems and jewelry from Jaipur, but now US buyers have stopped placing new orders and, in many cases, are refusing to collect shipped consignments, resulting in mounting losses and stranded inventory in the US.

As per reports, overall studded jewelry exports from Rajasthan have dropped about 30% over the last two years, from Rs 82,000 crore in 2023-24 to nearly Rs 60,000 crore in 2024-25, and the tariff hike is expected to reduce shipments further by up to 50% to the US market alone.

Handicrafts exporter and President, Federation of Rajasthan Exporters Rajeev Arora said, "The 50 percent tariff on Indian exports will impact nearly 8 lakh people in Rajasthan alone, including artisans, craftsmen, workers in the gems and jewelry industries, carpet weavers, and women from underprivileged backgrounds working in the textile sector. All of them depend on the handicraft sector for their livelihood, with major exports going to the US.”

As per industry experts, the halt in exports has put at risk the livelihoods of about 1.5–3 lakh workers directly dependent on the gems and jewelry trade in Jaipur, causing widespread job insecurity and financial distress, especially for small manufacturers and artisans.

The president of the Rajasthan Employers Association, NK Jain, said, "Manufacturing units have already started setting up their offices in the UAE and UK, but yes, the smaller players are likely to face problems, so we have asked the government to give the industry a Covid-like package and assistance for workers. “

While tariffs on Indian gems and jewelry have risen to 50%, competitor countries such as Turkey, Thailand, Vietnam, and the UAE face tariffs of only 10–20%, eroding Jaipur’s competitive edge in the US market.

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The chairman of the Gems and Jewellery Export Promotion Council, Kirit Bhansali, said that this imbalance, if unaddressed, could erode India’s long-standing position as a key supplier to the US. We are also concerned about the possibility of trade rerouting through low-tariff destinations such as Mexico, Canada, Turkey, UAE, or Oman—undermining the spirit of legitimate trade and impacting transparency.