Indian Exporters Rush to Beat Threat of 100% US Tariff

(IDEX Online) - Indian diamond and jewelry exporters are rushing to ship US-bound orders ahead of a potential 100% tariff that could be imposed from October 18.

President Donald Trump announced the move on September 18, signing legislation that gives the administration authority to impose additional tariffs of up to 100% on imports from countries that fall within specified categories relating to Russian energy purchases or sanctions evasion. The additional tariffs could be implemented from October 18.

India could be affected because it remains a major buyer of Russian oil. The legislation allows for the 100% tariff on Indian goods but does not automatically impose it.

But the threat of such a tariff is forcing  India's diamond and jewelry manufacturers to make a preemptive move.

The 140 gem and jewelry units in Mumbai's SEEPZ special economic zone have introduced overtime for about 80,000 workers, and 4,000 diamond-cutting and polishing units in Surat have also extended working hours.

Exporters are aiming to clear confirmed Christmas and holiday-season orders before October 16, two days ahead of the potential October 18 implementation date.

The rush extends beyond Mumbai and Surat. Smaller diamond-processing units in Saurashtra, Bhavnagar and Amreli are also increasing working hours to complete export commitments, according to the report.

The uncertainty is also changing the way exporters manage inventory and contracts. Some companies are keeping stock closer to US customers through US-based inventory and fulfillment operations, while others are rewriting contracts to make clear who will bear any additional duty.

India's exposure to the US market is substantial. Mumbai's SEEPZ exported gems and jewelry worth about $4 billion in fiscal 2026, while India's total gems and jewelry exports to the US are around $9 billion.