Jewelry exporters in Mumbai and Surat are accelerating shipments to the US to avoid potential 100% tariffs under the Sanctioning Russia and Iran Act. This rush aims to secure holiday season revenue, though the uncertainty surrounding duty enforcement poses a threat to profit margins for companies heavily exposed to the American market.
Indian jewelry exporters are working overtime to ship goods to the United States before October 18, 2026. This scramble is driven by fears of new tariffs under the Sanctioning Russia and Iran Act. Firms located in major hubs like Mumbai’s SEEPZ and the diamond-cutting center of Surat are accelerating production and cargo clearance. The goal is to ensure their products arrive and clear US customs before the potential imposition of duties that could reach as high as 100% on certain imports.
The United States remains the largest export market for India’s cut and polished diamonds. Because the upcoming holiday season is a crucial period for sales, companies are under immense pressure to maintain supply lines. If shipments are delayed or arrive after the deadline, they could face these new, steep tariffs, which would likely make the goods too expensive for US retailers to purchase or force manufacturers to take massive losses.
To manage this risk, businesses are shifting their strategies. Many exporters are actively renegotiating contracts with American retailers to clarify who will pay the extra costs if tariffs are enforced. There is also a move toward holding more inventory in US-based fulfillment centers rather than shipping based on immediate orders. By moving stock closer to the end-customer now, companies hope to maintain control over their supply chain and avoid customs bottlenecks later.
The lab-grown diamond segment is particularly vulnerable. This area of the business relies on high volumes and competitive pricing, meaning even a small increase in costs can hurt profit margins. If the tariffs are applied, companies in this segment may have a difficult time passing these costs on to consumers without hurting demand.
Investors and market participants should closely monitor how the US administration implements these new rules. The key monitorable for companies in this sector will be the stability of their profit margins, the outcome of current contract renegotiations with US importers, and whether demand for jewelry remains strong during the holiday shopping season despite the regulatory uncertainty. Further updates on export volume and inventory holding costs in the upcoming quarterly results will also provide a clearer picture of the financial impact.