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A hike in US tariffs could adversely impact India’s  GJ sector

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US President Donald Trump plans to implement reciprocal tariffs on all countries, countering previous speculation of targeting only 10 to 15 nations. These tariffs aim to rebalance trade and support US manufacturing, although specifics on affected countries and tariff calculations remain unclear.US President Donald Trump announced that he plans to begin his reciprocal tariff strategy with “all countries,” dismissing speculation that the initial tariffs, set to be unveiled on April 2, would target only 10 to 15 nations.

He has pledged to impose reciprocal tariffs on countries that levy fees on U.S. exports, aiming to match their duties. In February, Trump signed a memorandum instructing U.S. trade officials to craft customised countermeasures for each targeted country.

A hike in US tariffs that could adversely affect Indias  already-struggling diamond and jewellery sectors. India’s exports of gems and jewelry particularly studded gold jewelry and cut and polished diamonds will be largely impacted. A sudden tariff hike could severely impact exports, putting thousands of livelihoods at risk.

In 2024, India’s key exports to the US included precious and semi-precious stones (USD 5.3 billion), gold and other precious metal jewellery (USD 3.2 billion).India’s imports from the US included  cut and polished diamonds (USD 2.6 billion),  and gold (USD 1.3 billion).

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International News

Gold prices climbed above $4,250 ahead US ISM Manufacturing PMI release

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US spot Gold prices climbed above $4,250 early Monday, touching a six-week high as investors turned cautious ahead of the upcoming US ISM Manufacturing PMI release. The yellow metal is poised for further upside momentum if it secures a sustained daily close above the crucial $4,250 resistance level.

The US Dollar opened December on a softer note, pressured by rising expectations that the Federal Reserve may announce a rate cut next week. Growing market confidence in easing monetary conditions has boosted the appeal of non-yielding assets such as gold.

Analysts note that a decisive break and close above $4,250 could reinforce bullish sentiment and pave the way for an extended rally in the days ahead. As global markets await fresh cues from the US economic calendar, gold continues to benefit from a favorable macroeconomic backdrop and robust safe-haven demand.

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