The GPC Export Promotion (GJEPC) has expressed its strong concern after former US President Donald Trump announced a 25 % comprehensive tariff on all Indian imports, and a warning against the serious effects of trade, jobs and supply chains.
Kirit Bhansali, Chairman of GJepC, stated that the proposed step can significantly disrupt the economic fabric of India. “The American announcement of a 25 % tariff on Indian goods, along with unclear sanctions that affect our strategic commercial relations, is worrying. If imposed, this may lead to the impact of the domino in our export sector, which endangers the risk of supply tapes and threats to lives for thousands.”
The United States is the largest export destination in India for jewelery and jewelry products, which represent more than 10 billion dollars annually, or nearly 30 % of global exports in this field. GJEPC, a tariff of this scale, warned that would increase costs, create delay in shipping, distort pricing structures, and huge pressure on the entire value chain-from young craftsmen (Cargroge) to widely manufacturers.
The Trump advertisement puts an import tariff in India by 25 %, as of August 1, 2025, higher than the rates offered to many countries that the United States enjoy with commercial understandings. For example, the European Union’s customs tariff stands by 15 %, the United Kingdom by 10 %, and Southeast Asian competitors such as Indonesia, Vietnam and the Philippines range from 19-20 %. However, the proposed India rate is still less than 30 % current in China. Malaysia faces a similar 25 % average.
Experts reported the announcement of the customs tariff as a negative sign of India, especially if the commercial negotiations are suspended. With the absence of a trade deal in the United States and India under discussion, the uncertainty can affect the growth expectations of the fiscal year 26.
Adity Nayyar, ICRA’s chief economist, stressed that economic repercussions will be largely dependent on the scope and scope of the attached sanctions. “Earlier, when the United States imposed a tariff, we reviewed the gross domestic product growth expectations for the 2016 fiscal year of India to 6.2 %, and expected the soft export numbers and the delay in private investment. The newly proposed tariff and a more added punishment than what was expected at first, and we are likely to create additional pressure. The negative negative side will be determined on nature and on the scale of issues.”
With high -risk trade negotiations, industry leaders and policy makers urge a quick decision to protect national interests while preserving the strong economic relations of India with the United States.
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