New Delhi, April 3 -- The US government's decision to impose a 26% reciprocal tariff on Indian imports is expected to significantly impact India's gems and jewellery sector, experts said.

Gems and jewellery made up 12.8% of India's exports to the US and amounted to $9.9 billion in FY24.

US President Donald Trump announced the new tariff on 2 April, which he said is about half the rate of India's 54% tariff on US imports. The 26% tariff will be over a baseline tariff of 10% on all imports, which will be effective 5 April.

Garments, engineering goods, electronics, pharmaceuticals, and gems and jewellery accounted for 72.7% of the total goods trade between India and the US in FY24, contributing $56.34 billion out of the overall trade of $...