Perspective on the impact of US Tariff to be implemented 18th October onwards on Indian jewellery exports by Mr. Colin Shah, MD, Kama Jewelry
Below the Perspective on the impact of US Tariff to be implemented 18th October onwards on Indian jewellery exports by Mr. Colin Shah, MD, Kama Jewelry
“This geopolitically influenced trade warfare has led to a sense of panic among Indian diamond and jewellery exporters. Essentially, jewellery manufacturing and exports work on lean margin, mostly single digits to sometime lower end of double digits. With the implementation of a 100% tariff on India, India-US trade will be in jeopardy, and exporters will have to rework their margins, where the overall duties are evenly absorbed among the manufacturers, importers and retailers and still, about 5% to 7% of moderation in retail sticker tags will be passed down to end consumers.
To avoid this situation, exporters are rushing to clear off their orders and process the shipments well before the 18th October to avoid the tariff threat. To absorb the shock and yet keep the ship sailing post the implementation of a 100% tariff, Indian exporters are strengthening business in alternative markets like the Middle East under various trade pacts to diversify and keep the margins as secure as possible.”
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