Gem and Jewellery industry sounds alarm on US tariff threat to gem jobs

3 May 2025 07:40 pm Views - {{hitsCtrl.values.hits}} 7 Bookmark

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Sri Lanka’s gem and jewellery industry could face severe economic fallout if the United States moves ahead with the proposed reciprocal tariff, the Sri Lanka Gem and Jewellery Association (SLGJA) cautioned.

It called for urgent government intervention to protect one of the country’s most vital export sectors.

The SLGJA said the planned U.S. measure would “significantly disrupt Sri Lanka’s gem and jewellery sector,” which supports the livelihoods of over 600,000 people, including miners, cutters, exporters and designers. The United States currently receives about 10 percent of gemstones originating from Sri Lanka, either directly or via third countries such as Thailand, Hong Kong, Dubai and Switzerland.

“Increased duties on Sri Lankan gems and jewellery would make our products less competitive in the U.S. market. This could have devastating social and economic consequences for families who are already vulnerable due to global market fluctuations and post-pandemic recovery challenges,” the association said in a statement.

The move, described by the SLGJA as a threat to “mutual economic benefits” enjoyed over decades of bilateral trade, risks pushing small and medium-sized enterprises into crisis and triggering job losses across the value chain. The industry is one of Sri Lanka’s oldest and most globally recognised, known for its high-quality sapphires and centuries-old craftsmanship.

The SLGJA urged Sri Lanka’s government to initiate constructive dialogue with the United States government and relevant trade bodies to prevent the proposed tariff from taking effect. It also called for the reconsideration and permanent removal of the measure.

“We firmly believe that the continuation of duty-free or preferential access to the U.S. market for Sri Lankan gems and jewellery is essential not only for sustaining local livelihoods, but also for maintaining the high-quality and diversity that American consumers expect from our products,” the Association said.

Comments - 7

Rip Winkle Saturday, 03 May 2025 09:53 PM

Why get excited? Europe is the biggest buyer of our gems.

2 16

Rich have money, but they still like buying same quality at lower price Sunday, 04 May 2025 02:13 PM

There is considerable re-export of Lanka finished gems to US through intermediary counties like Switzerland. US officials are not so stupid to think just because Lanka origin gem is sold out of Switzerland that the gem should get lower reciprocal tariff.

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Priyantha S Sunday, 04 May 2025 12:55 AM

If it goes through, how will US tariff affect SL gems?

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Yusuf Ibrahim Sunday, 04 May 2025 09:23 AM

As a country we need to DIVERSIFY the countries that we EXPORT to rather than depending on a few countries.

2 7

M Fernando Sunday, 04 May 2025 11:55 AM

Another bunch of businessmen who are late to the party and now in true SL style, looking for a handout !

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Eyes wide open Sunday, 04 May 2025 12:37 PM

Sri Lankan sapphires are the best! Will US really want to forgo these? Where else can they get them from?

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Rich have money, but they still like buying same quality at lower price Sunday, 04 May 2025 02:09 PM

I expect if US reciprocal taxes Lanka finished gems re-exported Switzerland at 44% the US buyers who bought $10,000 sapphires might think twice before buying $14,400 instead wait until Lanka reduces trade barriers to US allowing US in turn to cut the reciprocal tariff. What to you think with that @Eyes wide open.

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