NEWLY CREATED TARIFFS on fine jewelry and loose gemstone imports by the Trump administration are all the trade can think about now. Tariffs are being levied as a means of making international trade fairer for American companies who want to sell abroad, to increase U.S. revenues to pay down the deficit, and as an effort to bring home some manufacturing jobs.
But for the trade, tariffs increase costs of goods imported and ultimately, consumers will pay more for most jewels and gems.
On April 2, 2025 — Trump’s self-proclaimed Liberation Day — a 10% baseline tariff was announced on many imports including jewelry and gemstone imports, and it went into effect on April 5. Also on April 2, Trump unveiled reciprocal tariffs (based on what nations charged the U.S.), which were quickly paused, with nations instructed to contact the White House to negotiate new rates. On Aug. 7, 2025, the pause ended.
While Vietnam, Indonesia, the Philippines, the U.K. and Israel have negotiated new rates, most other countries have not. Now, they’re facing not just tariffs but high ones that could hurt business. China and India are particularly vulnerable as their rates are much higher than others, meaning that jewelry and gemstone businesses based there (and there are many) and their U.S. partners will suffer.
Additionally, the U.S. is ending the “de minimis” exemption — which currently allows imports valued at $800 or less to enter duty-free — effective Aug. 29, 2025. After that date, all imports, regardless of value or country of origin, will be subject to applicable duties.
To further clarity the tariff situation and offer insights, guidance, advice, and suggestions that could help American businesses navigate this new terrain, INSTORE reached out to industry associations, gemstone dealers, jewelry manufacturers and U.S. Customs. Here’s a summary of their feedback.
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What Are the Tariff Rates?
The Jewelers Vigilance Committee (JVC) has a public Tariff Tracker on its website, and your shipping partners (think Malca Amit) will also be able to detail the most current tariff rates. The following chart offers an overview of the tariff rates at press time, negotiated and non-negotiated. One caveat: Rates and deals with countries can change frequently, so check with your shipping company for the most current rate. Also, this is not a complete list of all countries; see the JVC’s Tariff Tracker for missing nations’ tariff rates.
Source: The Jewelers Vigilance Committee’s Tariff Tracker and the most current U.S. Customs & Border Protection data
* Canadian-origin diamonds could be excluded from tariffs under the US-Mexico-Canada Agreement (USMCA). Check with your Customs broker.
** On Aug. 11, Trump signed an Executive Order extending the existing tariff truce with China by 90 days; the new expiration date is Nov. 10, 2025, when higher tariff rates—as much as 145%–go into effect.
How Tariffs Are Affecting the Industry
American jewelry manufacturers know that precious metal ingot is exempt from tariffs to encourage U.S. jewelry manufacturing and because it is a “critical mineral needed for manufacturing,” according to Sara Yood, CEO and general counsel, The Jewelers Vigilance Committee (JVC).
Other raw materials, such as loose gemstones and cultured pearls, are subject to tariffs, which gives metal-only manufacturers an advantage over other U.S. jewelry makers.
“This has created a real division between those who are using gems and those who are not,” adds Yood. “Because those who are making jewelry without gemstones are largely unaffected.”
This is Brian Fleming’s reality. The owner of Carla Corp. in Providence, R.I., manufacturers his own precious-metal-intense jewelry and uses minimal amounts of gemstones.
“We still have challenges, like the cost of carrying gold jewelry when it’s about $3,400 an ounce, but we do have an edge because we manufacture here,” he says.
Estate and secondhand dealers, too, won’t be affected a great deal. Consider Paul Altieri, CEO of Bob’s Watches, a purveyor of pre-owned watches (largely Rolexes); he’s not too worried since all his inventory and most sources are in the U.S.
“If the new watch market slows under the weight of tariffs, the preowned market may very well become the lifeboat,” he observes.
But for gemstone and finished jewelry importers? That’s a whole other story. On Aug. 8, one New York City-based gemstone importer got a call from Customs at John F. Kennedy Airport in New York, asking him for his credit card. A package with gems had arrived and Customs wouldn’t release it unless the dealer paid the tariff directly to them; then his Customs broker could pick it up. Then he paid another fee to the Customs broker. So, one $6,000 shipment incurred about $975 in Customs tariffs and the dealer had to pay another 3-4% of the package’s value to the broker. That’s a lot of extra costs to pass on to consumers.
Phillip Maroof, creative director and designer at Royal Chain, is grateful that the 15% tariff rate for Italy, where he manufactures a lot of his sterling silver and karat gold jewelry with gemstones, is lower than other countries.
“We are currently looking into ways to mitigate the impact, but this will take a while to work on, and you can expect consumers to pay the price,” he says. “The people affected most will be the middle class. The 1% won’t be affected by these increases.”
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Minimizing Industry Impact
No one is sure this is at all possible, but many, nonetheless, are trying to obtain government exemptions. Both the American Gem Trade Association (AGTA) and Jewelers of America (JA) are working hard to obtain relief for members.
AGTA’s membership comprises many loose gemstone dealers. In early April, AGTA retained Washington D.C. lobbyist group Hecht, Latham, Spencer & Associates to try to eliminate tariffs on loose gemstones.
“The higher punitive tariffs on India and Brazil are having a devastating effect on our membership and if not rescinded will affect Q4 negatively for wholesalers and retailers alike,” says CEO John W. Ford, Sr. “While a gemstone imported from Kenya might have a 10% tariff rate, when exported to be cut in Thailand, for example, a tariff of 19% would apply when reimported into the U.S. on the full transformed value of the gem.”
AGTA’s strategy? Enlist members of Congress to send letters to the Trump administration.
“AGTA is happy to report that AGTA has multiple letters from Senators and House Members on the desks of President Trump, Secretary Scott Bessent, Secretary Howard Lutnick, and Ambassador Jamieson Greer. AGTA also has information on Duty Drawbacks and Free-Trade Zones (FTZ) that can mitigate the effects of tariffs, and we have test cases underway exploring these options. The tariffs will destroy the entire jewelry supply chain if not eliminated.”
Meanwhile, Jewelers of America president and CEO David Bonaparte also has lobbyists in Washington seeking exemptions, but he is also encouraging JA members to voice their concerns to local representatives.
“Since Liberation Day, we have been encouraging our members to visit our Legislative Action Center on our website to reach out to their elected officials to give examples of the negative effect tariffs are having on their businesses,” says Bonaparte. “JA is also hosting its annual Fly-In for our Jewelers of America Political Action Committee (JAPAC) in September, and we encourage our members to get involved in whatever level possible — donating to JAPAC, taking part in the Fly-In, or submitting a letter to JA on how the tariffs impact your business.”
Tips for Wholesalers
Don’t DIY this — engage a licensed customs broker to help. And don’t try to circumvent the tariffs, such as sending goods from a high-tariff country to a lower tariff country (for example, shipping Chinese-grown pearls to Vietnam for final export). It could come back to burn you, and you could pay double the tariff rate of that country.
What really stings most of industry is the memo goods; dealers still must pay for the full tariff rate up front. But there are some ways to try to deal with this scenario, says Yood. [One of them is something that AGTA’s Ford mentioned above—Duty Drawback.]
Duty Drawback is applying to Customs for a reimbursement of import fees if you can prove you didn’t sell the goods. Click here to file your first Duty Drawback.
Another method is a carnet, which most of industry knows. This can help foreign trade show operators bring goods into the U.S. without payment and allow them to just take orders on goods and ship them upon return home to their own countries.
A final way of dealing with the tariffs is obtaining a Temporary Importation under Bond (TIB). This means paying a bond to the government upon import of goods not for sale or sale on approval. You must export the goods within a set time or pay double the duties in penalties.
“This is how diamonds are coming into the U.S. for evaluation,” says Yood.
To learn more about TIBs, Customs advises interested parties contact licensed brokers for help.
And for those seeking alternative locations of manufacturing and making merchandise closer to home, such as in Mexico or Canada, there are some goods that could fall under the United States-Mexico-Canada Agreement (USMCA), a successor to the North American Free Trade Agreement. Items that qualify could come into the States “tariff free,” notes Yood.
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Tips for Retailers
This is a great time to sell American-made jewelry and American-mined gemstones cut by Americans. Clearly, many gems are excluded from this move, and some caveats exist even for American-mined gems like Montana-origin sapphires. Oftentimes, commercial-quality rough is shipped abroad for cutting (substantial transformation) and shipped back to the U.S., which can incur tariffs. This is why buying American gems from American cutters can be a cost savings, though purchasing all-American produced goods will likely cost more than commercial-quality goods manufactured abroad.
Since precious metal ingot can be imported with no tariffs, seek out jewelry makers who craft everything stateside. You’ll have to weigh the costs of potentially more expensive American-made goods versus highly tariffed imported goods to decide what makes the most sense for your clientele and business.
If your store sells brands or commercial-quality goods that are largely made abroad, there’s no way to avoid tariffs. Ditto for Swiss-made anything (think watches) as that tariff is 39%.
However, if your store sells better-made merchandise, period, dig into the American talent scene for both makers and cutters. And if your business sells mainly precious-metal-intense jewelry with minimal amounts of gemstones, buy those goods from firms that manufacture in the U.S., and the tariffs will hardly affect you.
Additionally, you can reach out to your overseas suppliers to arrange terms to help alleviate your cost burden in the short term while organizations continue to lobby the administration for relief (see the advice from Gem Jewellery Export Promotion Council (GJEPC) chairman Kirit Bhansali below for more).
Q & A with Mr. Kirit Bhansali, Chairman, GJEPC
What is the total monetary value of Indian exports of loose gems and finished jewelry to the U.S.?
In FY 2024-25, India exported to the US approximately $9.18 billion worth of loose gems and finished jewelry to the U.S.. This consisted of loose natural diamond, lab-grown diamond and colored gemstone exports worth $5,595.6 million and jewelry exports (gold, plain gold, studded gold, silver, platinum, imitation) of $3,582.7 million.
What is the monetary value of all exports of loose diamonds and diamond finished jewelry versus loose colored gemstones (CGS) and colored gemstone jewelry from India to the U.S.?
For FY 2024–25, India exported $4,819.0 million-worth of loose diamonds (cut and polished diamonds) to the U.S., while diamond jewelry exports stood at $2,346.75 million. Together these add up to $7,165.75 million. In comparison, exports of loose colored gemstones totaled $100.71 million, and jewelry studded with precious and semi-precious colored gemstones and pearls amounted to $146.74 million. These were cumulatively valued at $247.45 million.
Will select segments of the American market, such as cut and polished diamonds and finished diamond jewelry, be harder hit than colored gemstones and finished gemstone jewelry?
Yes, you are absolutely right. Cut and polished diamonds constituted more than half ($4,819.02 million) of total gem and jewelry exports to the U.S. in FY 2024-25, and will likely bear the brunt of the U.S. tariff hike along with studded jewelry. The U.S. market accounts for over a third (36%) of India’s diamond exports and almost half (over 45%) of its studded jewelry exports.
It is important to remember that loose diamonds and colored gemstones are intermediary products, essentially raw materials that the US jewelry manufacturing industry depends on for sustaining thousands of jobs and businesses. With the 50% tariff kicking in on August 27th, we expect severe disruption in both these product categories at both ends of the supply chain.
It would seem that American chain retailers would be hardest hit by the tariffs on Indian gems and jewels, but will better independents endure as many or fewer tariff challenges?
We believe the repercussions will be damaging across the retail spectrum, affecting large chains and the 70,000 smaller independents in equal measure. It is a big shock and could really shake up the U.S. supply chains that the Indian exporters have worked so hard to build over the years. That kind of disruption isn’t just a short-term hiccup; it threatens the steady exports that have been a cornerstone for so many livelihoods in the industry.
Does the GJEPC have any advice for its American customers to continue working with Indian suppliers?
We would encourage our American partners to view this as a temporary policy hurdle rather than a permanent shift. The strong foundation of trust and quality that Indian suppliers have built over decades remains unchanged. We advise open dialogue with Indian counterparts to explore flexible arrangements to help navigate near-term cost pressures. Maintaining these longstanding partnerships will ensure resilience and readiness when trade conditions stabilize.
Is there anything that American partners can do to alleviate the current tariff situation for Indian cutters and manufacturers?
We urge our American partners to make their voices heard with trade bodies and policymakers about how these tariffs hurt both sides. By working together on smarter planning and tariff burden-sharing, we can keep our supply chains strong until fairer and equitable trade conditions return.
