Exporters are in talks with US buyers to maximise shipments and are working through holidays to expedite dispatches, industry officials said.
The US Supreme Court had on Friday invalidated Trump’s “reciprocal tariffs” under an international emergency law. The president immediately announced a new 10% tariff on all countries and raised that to 15% on Saturday. The levy, implemented under Section 122 of the Trade Act of 1974, will remain in effect for a maximum of 150 days unless extended by Congress. The Gem & Jewellery Export Promotion Council requested Mumbai customs authorities to remain open on Sunday to facilitate shipment of diamonds and jewellery.
“We are hopeful exports of diamonds and coloured gemstones will be under zero duty despite the US president’s recent announcement,” Kirit Bhansali, chairman of the council, said.
Under the interim agreement framework between India and the US, the Indian gem and jewellery industry was granted zero-duty access for diamonds and coloured gemstones to the US while the tariff on jewellery was reduced to 18% from 25% under the interim agreement.
“We are also talking to our legal experts on the development regarding tariff,” Bhansali said. “We have spoken to the union commerce ministry and they have told us to wait for some more time to get clarity.”The diamond sector took a severe hit over the past year, with India’s cut and polished diamond exports to the US declining by more than 60% year-on-year, from $3.64 billion in April-December 2024 to $1.45 billion in April-December 2025, as tariffs eroded competitiveness.
Confederation of Indian Textile Industry (CITI) said it is analysing the implications of the latest developments on US tariffs and how they may affect India’s textile and apparel exports. “Without a doubt, the recent development has cast a fresh spell of uncertainty,” it said in a release. “Authorities providing greater clarity, including on what now happens to the terms agreed in the interim trade deal between India and the US, will be most helpful.”
Lalit Thukral, chairman of Noida Apparel Export Cluster, said they would push exports to the US over the next 150 days, but added there is “a lot of uncertainty in the US market” over whether importers would receive a refund of tariffs paid.
India’s performance in the US textiles and apparel market in 2025 was effectively flat, with imports rising just 0.9% to $9.68 billion.
Ramesh Juneja, chairman of Council for Leather Exports, said US buyers are in touch with exporters. “We will ship orders within the 150-day window. But there needs to be more clarity on the tariff front to boost leather exports,” he said. India exports leather goods worth about Rs 18,000 crore a year to the US.
Pankaj Chadha, chairman of EEPC India, said all countries are at par now with the flat 15% tariff. “It will be difficult to gain market share from other countries as there will be no disparity in reciprocal tariffs,” he said. India exports engineering goods worth $22 billion a year to the US.
Exporters fear that Trump may invoke Section 301 of the Trade Act of 1974, which allows the US Trade Representative to investigate and impose trade measures if another country is found to have engaged in what is characterised as “unfair” trading practices.