U.S. Imposes 50% Tariff on Indian Gems and Jewelry; Exports Plunge

(UNITED STATES) A steep new trade move is hitting Indian-American families right where it hurts: their wedding gold. The United States now applies a total 50% tariff on Indian gems and jewelry, with full effect from August 27, 2025. Families buying in India or in U.S. stores are seeing prices jump overnight.

The policy, announced in late July and formalized by executive order on August 7, 2025, raises costs for buyers and shakes India’s $10–12 billion export pipeline to the United States. Customs officers are charging the 50% rate on Indian-made jewelry brought in by travelers, minus a small $800 exemption.

What changed and when it takes effect

• July 31, 2025: President Trump announces a 25% tariff on Indian jewelry and related goods.
• August 7, 2025: The first 25% starts at midnight ET. The same day, an executive order adds another 25%, for a total 50%.
• August 27, 2025: The second 25% kicks in. Effective duty on many diamond and gold items now exceeds 50% once all surcharges apply.

Officials have framed the step as part of wider pressure on India’s energy ties and to reduce the U.S. trade deficit. Industry groups warn the action will cause deep disruption in both countries.

How this hits family budgets and weddings

Prices are spiking. A $20,000 bridal set now tops $31,000 once tariffs and retailer pass-throughs are included. For Indian-American weddings, where gold is both a blessing and a savings plan, that’s a painful jump.

Many families are switching to:
– lighter designs
– recycled gold
– heirlooms

These choices help control costs without losing cultural and sentimental value.

Who pays the tariff when traveling

U.S. Customs and Border Protection (CBP) bases duty on:
– Country of origin (where it was made)
– Tariff classification (the HS code)
– Declared value

That means anyone entering the United States with newly purchased Indian-made jewelry pays the India-specific rate. The $800 personal exemption applies first; the rest of the value is assessed at the tariff rate. This rule applies regardless of citizenship or heritage.

A simple example

1. You buy a $10,000 Indian-made necklace in Mumbai.
2. On arrival in the United States, you declare it.
3. CBP deducts $800 and applies the tariff to the remaining $9,200.

What if it’s not new?

Heirloom or ancestral jewelry can be duty-free if you can show it’s not a new purchase. CBP may assume it’s new unless you prove otherwise. Good proof includes:
– Old photos of the piece worn at family events
– A family letter stating it’s a gift or inheritance and its rough age
– Older appraisals or receipts
– CBP Form 4457 (Certificate of Registration) if the jewelry was in the United States before travel

Key traveler forms and links

• For jewelry already owned in the United States before a trip abroad, register it before departure with CBP using Form 4457. Official page: https://www.cbp.gov/travel/us-citizens/know-before-you-go/register-items-valore
• At arrival, declare all items on Form 6059B (Customs Declaration). Official info page: https://www.cbp.gov/travel/us-citizens/sample-declaration-form

Note: Use the latest versions from CBP’s site. Keep copies handy in your carry-on.

Airport do’s and don’ts

Do:
– Declare all jewelry honestly
– Keep proof documents accessible
– Explain if the item is personal or ancestral and show proof

Don’t:
– Assume “under $10,000” means no declaration — that cash rule does not apply to goods.
– Split jewelry across relatives to dodge questions — CBP can still assess duty.

Impact in India and on global supply chains

The United States is India’s largest jewelry market. Exports ran near $10–12 billion last year, about 35% of India’s gem and jewelry exports. Industry leaders warn of a 40–50% drop in U.S.-bound orders. Up to 1 million jobs—especially in hubs like Surat and Mumbai—are at risk.

Diamond exports, already at a 20-year low, could fall further if orders continue to slide. Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), called the day of the announcement “a very black day for the gem and jewelry sector,” warning of pressure across the value chain.

U.S. trade groups, including Jewelers of America, are pushing for carve-outs for diamonds and gemstones, arguing the United States doesn’t mine or cut these at scale.

Companies are exploring moves to the Gulf, where U.S. tariffs run closer to 10%. The UAE is a top candidate due to logistics, existing trade ties, and regional free trade frameworks. Exporters are also testing Europe, Latin America, and Southeast Asia, though none match the scale of the United States 🇺🇸 market.

What this means for U.S. buyers and immigrant families

• Retail prices: Stores are pricing in the 50% tariff. Expect fewer heavy sets and more lightweight items.
• Weddings: Families are shifting budgets, delaying purchases, or choosing heirlooms. Many are melting older gold to remake pieces for the big day.
• Personal imports: Duty applies to new Indian jewelry above the $800 exemption. Heirlooms can still enter duty-free with proof.

Real-life scenarios

• The Houston bride: Her parents planned to buy a $25,000 set in India for the sangeet and wedding. With U.S. tariffs, the cost now approaches $39,000. They decide to remake a grandmother’s necklace, add lightweight bangles, and buy matching earrings locally in smaller weights.
• The New Jersey small business owner: He sells Indian jewelry in his store. With higher landed costs, he shifts to pre-owned resales and recycled gold, offering trade-ins to help customers keep costs down.
• The Bay Area traveler: She registers her existing pieces on Form 4457 before a trip, brings back a family heirloom with photos and an old appraisal, and clears CBP without duty.

How to prepare if you still plan to buy

1. Before travel: For items already in the United States, get Form 4457 stamped at CBP before you fly out.
2. For heirlooms abroad: Build a proof packet with old photos, a family letter, and any past appraisals.
3. For new purchases: Request detailed invoices listing country of origin, purity, weight, and price. Budget for the 50% rate on value above $800.
4. At the counter: Ask U.S. jewelers about recycled gold options and lighter designs that still match wedding themes.

One official resource worth bookmarking

CBP’s “Know Before You Go” page explains duty, exemptions, and declaration rules for travelers entering the United States. It’s practical, current, and helps avoid costly mistakes at the airport. See the official CBP guidance on customs declarations and exemptions at the Know Before You Go page.

Policy background and outlook

Before 2025, U.S. tariffs on Indian jewelry hovered around 10–15%. The jump to 50% marks the sharpest barrier the sector has faced. Analysts expect more order cancellations in the short term, followed by efforts to reroute production.

A U.S. trade delegation is expected in India for talks; any relief would likely come through negotiated exemptions or phased reductions. As reported by VisaVerge.com, industry groups on both sides are pushing Washington to consider targeted relief for diamonds and high-value items that lack domestic supply.

Bottom line for families

• New Indian jewelry now faces a 50% tariff in the United States.
• Heirlooms can be duty-free with proof.
• Plan early: gather documents, declare honestly, and consider lighter, recycled, or pre-owned options.

For many Indian-American families, gold is more than metal. It’s love, memory, and a promise passed down at weddings. U.S. tariffs won’t erase that meaning, but they do make every choice—and every receipt—matter more.