India's Rush to Beat 50% US Tariffs on Diamonds
August 26, 25
(IDEX Online) - Diamond manufacturers in India have been rushing to dispatch goods to the US to beat tomorrow's deadline, when tariffs double from 25 per cent to 50 per cent.
The additional 25 per cent tariff, imposed by President Donald Trump to punish India for buying Russian oil, comes into force from 12:01am EDT (9:31am IST) on 27 August.
Shipments arriving by air will avoid the additional tariff as long as they are officially entered into the US before the start time.
Goods sent by sea have been granted an extension. As long as they were dispatched before the 27 August deadline, they will not be subject to the additional tariff as long as they arrive in the US by 16 September.
However, sea freight typically takes 28 to 45 days port-to-port, so goods sent today will arrive after 16 September and be charged at the full 50 per cent.
Goods dispatched by air before the 27 August but arriving after the deadline will be subject to the full 50 per cent.
A US Homeland Security notification yesterday (25 August) officially confirmed the additional 25 per cent tariff.
It said Indian goods that entered the US for consumption, or withdrawn from warehouse for consumption after the deadline would attract heightened levies.
The 50 per cent tariff is among the steepest imposed by the US and severely affects the Indian diamond industry, which is heavily reliant on the US market.