The United States has imposed a 50% tariff on Indian jewelry imports. However, Indian jewelry companies are cleverly finding ways to skip Trump's tariff. According to US tariff rules, if raw material is exported from the US to India and returns as a manufactured product, no tariff is imposed.
Indian jewelry companies are taking advantage of this rule. One such company is Goldiam International Ltd, which manufactures and exports diamond-studded gold, silver, and platinum jewelry.
Goldiam International Ltd imports raw materials from the US, crafts jewelry out of them in India, and then re-exports the finished items to the US, thereby avoiding the 50% tariff. The company transforms raw gold into jewelry in the US itself before sending the semi-finished items to India. In India, the pieces are polished and diamonds are set before sending them back to the US, which allows for the exemption from heavy duties.
As per media report, the company stated that the gold is purchased and processed in the United States, so the product retains its U.S.-origin status. As a result, no duty is levied on the gold component; instead, a 5.5% duty is imposed on the incremental value addition (diamonds and labor). This enables Goldium to protect its margin profile, sustain volumes, and maintain a clear cost advantage over smaller and less organized competitors.
Goldiam was established in 1986, has earned global recognition by providing services to major international retailers in the US, Europe, and other markets. Their products are especially popular in the US. The company has announced the successful implementation of this active manufacturing strategy, which protects its exports from the recently imposed 50% tariff on Indian jewelry imports in the US.
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PS: I am told that not only jewelry players but even textiles players are exploring this route- importing US cotton, processing it into yarns and fabrics and then into garments for re-export back to US
