In a significant development for India’s gem and jewellery sector, a U.S. federal court has intervened to halt steep import tariff hikes that threatened to disrupt exports to one of its largest markets. The Court of International Trade in Manhattan declared the proposed “Liberation Day” tariffs—introduced under former President Donald Trump’s executive orders—as unlawful, temporarily shielding Indian exporters from punitive duty increases.
The contested tariffs, originally scheduled to take effect on April 9, aimed to raise import duties on a broad range of goods, including jewellery, from 6% to an alarming 26%. Though deferred to July 9 pending litigation, the potential impact had already raised alarm bells across India’s export community.
Industry leaders had warned that such a sharp hike would severely impact competitiveness and cash flows. Jewellery units operating from the Special Economic Zone in SEEPZ, Mumbai—who send nearly two-thirds of their $3.5 billion annual exports to the U.S.—would have faced a fivefold increase in upfront duties, from $60,000 to $320,000 for every $1 million consignment.
The court’s ruling brings temporary relief and highlights the critical role of judicial oversight in trade matters. It also underscores the volatility that exporters face amid shifting geopolitical and economic policies. While the decision is not a final resolution, it offers exporters a vital breathing space to reassess their strategies in the face of global economic uncertainty.
This reprieve also reiterates the need for stable, predictable trade policies that support long-term growth for sectors like gems and jewellery—industries that rely heavily on cross-border partnerships and consistency in international trade norms.
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