The announcement, made via Trump’s Truth Social account, ended any remaining hopes of a last-minute trade resolution. "While India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high... and they have the most strenuous and obnoxious non-monetary trade barriers of any country," Trump wrote.

The news has sent shockwaves through India’s gem and jewellery industry, which counts the United States as its largest export market, accounting for over $10 billion — nearly 30% of the sector’s global trade.

Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), expressed alarm over the decision. He said, "This is a deeply concerning development. A blanket tariff of this magnitude will place immense pressure on every part of the value chain," he stated.

The sudden imposition of tariffs comes despite recent optimism. Less than two weeks ago, Trump indicated that the U.S. and India were "very close" to a trade agreement. Talks reportedly broke down over key issues, including agricultural and dairy imports.

U.S. Trade Representative Jamieson Greer had earlier stated that discussions with Indian counterparts were ongoing and constructive. However, today’s development suggests a sharp turn in U.S. trade posture toward India under Trump’s leadership.

The new tariff regime is expected to have far-reaching consequences, not just for the jewellery industry, but for broader India-U.S. trade relations, particularly as India navigates its ties with Russia amid ongoing geopolitical tensions.