The US will slash tariffs on Indian goods – diamonds, gems and jewellery included – to 18 per cent from 50 per cent after US President Donald Trump and Indian Prime Minister Narendra Modi reached a new trade deal.

In a post on Truth Social, Trump said Modi also agreed to stop buying oil from Russia, reduce Indian tariffs and non-tariff barriers against the US to zero and purchase more US-made goods. The bilateral deal will see tariffs on Indian exports to the US cut from a hefty 50 per cent announced in August last year.

Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said the move offers “vital relief to India’s gem and jewellery sector.” The US is India’s biggest gem and jewellery market, accounting for 31 per cent of exports in 2024-2025 or about US$9.23 billion.

“Tariff cuts lower costs for US importers, boost competitiveness of Indian diamond jewellery, revive demand and stabilise operations,” remarked Bhansali. “GJEPC is optimistic that loose diamonds and coloured gemstones from India will get the benefit of zero duty imports in the US via the Annex 3 of the US reciprocal tariff list.”

India’s gem and jewellery exports to the US plummeted 44.42 per cent from April to December 2025, GJEPC earlier reported. Key categories demonstrated the steepest declines: Cut and polished diamonds; studded gold jewellery and plain gold jewellery were down 60.11 per cent, 24.54 per cent and 28.89 per cent, respectively.