The United States and India are near a trade deal that would slash the current 50% tariff on Indian imports to 15%–16%, according to a report in Indian newspaper Mint that cited “three people aware of the matter.”
If a trade deal is signed, loose diamonds and gemstones cut in India could conceivably be imported into the United States tariff-free, because of an executive order signed in September. Diamond jewelry, however, would still be subject to a historically high 15% levy.
The tariffs have caused considerable unrest in India’s gem sector, where industry leaders have warned they’re putting more than 100,000 jobs at risk.
In late July, after negotiations between President Trump and Indian prime minister Narendra Modi broke down, the U.S. slapped a 25% tariff on Indian imports, which took effect Aug. 1. A week later, that was hiked to 50%, as punishment for India’s purchases of Russian petroleum. On Tuesday, Trump said that Modi had told him India “was not going to buy much oil from Russia.”
(Photo: Getty Images)
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