The US and India have reached a framework for their recently announced trade agreement that will see taxes on gem and natural diamond imports into America reduced to 0%.
While the levy will remain at 18% for goods imported into the US that are also produced within the country, such as textiles and apparel, leather, footwear, plastic, rubber and chemicals, items that the US has access to only through importation, will be treated differently.
“Subject to the successful conclusion of the interim agreement, [the US] will remove the reciprocal tariff on a wide range of goods identified…in the Annex to Executive Order 14346…including generic pharmaceuticals, gems and diamonds, and aircraft parts,” the countries said jointly in a statement released by the White House Friday.
The move follows US President Donald Trump’s social-media announcement last week in which he said he would remove a 25% punitive tax on India and reduce the remaining 25% tariff to 18%.
The agreement does not pertain to lab-grown diamonds.
“If and when the benefits of Annex III are implemented, cut and polished diamonds are expected to become duty-free,” the Gem and Jewellery Export Promotion Council (GJEPC) said Saturday. “However, lab-grown diamonds are not included in Annex III, so they would continue to be subject solely to the 18% reciprocal tariff.”
Additionally, jewelry casting made in the US and sent to India for gem setting or finishing remain US origin and qualify for exemption, with no reciprocal tariff applied on the Indian value addition, the GJEPC added.
Image: US and India flags. (Shutterstock)
date: 2026-02-08 10:32:00