US to Lift Tariffs on Indian Gems, Diamonds After Interim Agreement

• The US will remove reciprocal tariffs on Indian gems and diamonds upon the conclusion of an interim agreement.
• This move is expected to significantly relieve India’s gems and jewelry sector, which sees the US as its largest export market (30% of sales).
• The US has already reduced the effective rate on Russian oil purchases by India from 50% to 25%, with further reduction to 18% expected.
• India’s gem and jewelry exports to the US contracted sharply by 44.42% (to $3.86 billion) from April-December 2025 due to tariff pressures.
• Gems and jewelry are India’s third-largest export category to the US, supporting millions of livelihoods.