Image Source : ScanX
Goldiam International Ltd has unveiled a proactive manufacturing and sourcing strategy that effectively insulates its U.S.-bound exports from steep tariff hikes. In response to the United States’ imposition of a 50 percent duty on certain imported jewellery products, the company has restructured its operations to retain U.S. origin status for its gold components, thereby avoiding punitive trade costs.
The move comes at a time when India’s gems and jewellery sector is grappling with rising protectionism and shifting trade dynamics. Goldiam’s approach—buying and casting gold within the United States—ensures that its products qualify as U.S.-origin, exempting them from the full brunt of the new tariffs. Only a 5.5 percent duty is now levied on incremental value addition, significantly reducing the cost burden on exports.
Key Highlights From Goldiam’s Strategic Shift
- No tariff applies to the gold component of exported jewellery
- A 5.5 percent duty is charged only on value-added processes
- Gold is sourced and casted in the United States, retaining U.S. origin status
- Strategy implemented to counter the 50 percent tariff imposed on Indian jewellery imports
- Export operations remain competitive and uninterrupted despite trade barriers
- Expansion of B2C operations through Origem brand supports direct U.S. engagement
Manufacturing Realignment And Origin Strategy
Goldiam’s decision to cast gold in the United States is a calculated response to the tariff regime introduced in April 2025. By ensuring that the base metal originates and is processed within U.S. borders, the company avoids classification as a foreign import. This origin status is critical in navigating customs regulations and tariff schedules.
The incremental value addition—such as diamond setting, polishing, and finishing—is subject to a modest 5.5 percent duty, a fraction of the 50 percent levy that would otherwise apply to fully imported jewellery. This hybrid manufacturing model allows Goldiam to maintain price competitiveness while complying with U.S. trade laws.
Impact On Export Performance And Market Position
Despite the challenging tariff environment, Goldiam has continued to secure large export orders from U.S. clients. In September 2025, the company announced a Rs 100 crore contract for lab-grown diamond-studded gold jewellery, reinforcing its position in the premium segment.
The company’s integrated supply chain and adaptive sourcing have enabled it to:
- Sustain profit margins amid rising trade costs
- Preserve relationships with key U.S. retailers and wholesalers
- Avoid disruptions in delivery timelines and product availability
- Maintain brand credibility in ethical and sustainable jewellery markets
B2C Expansion And Origem Strategy
In parallel with its origin-based manufacturing shift, Goldiam is expanding its business-to-consumer footprint through its Origem brand. This initiative aims to deepen direct engagement with U.S. consumers, bypassing traditional B2B channels and enhancing brand visibility.
Origem’s growth strategy includes:
- Online retail platforms targeting ethical jewellery buyers
- Custom design services for lab-grown diamond collections
- Marketing campaigns focused on sustainability and traceability
- Integration of U.S.-based fulfilment centers for faster delivery
Industry Context And Broader Implications
The U.S. tariff hike has sent ripples across India’s $32 billion gems and jewellery export industry, which relies heavily on American buyers. Goldiam’s strategic pivot offers a blueprint for other exporters seeking to navigate protectionist policies without sacrificing market access.
By leveraging origin rules and investing in local processing, Indian firms can mitigate tariff exposure and remain competitive in high-value markets. The approach also aligns with global trends favoring ethical sourcing, traceability, and local engagement.
Forward Outlook And Strategic Priorities
Goldiam is expected to continue refining its U.S. operations, with potential investments in casting facilities, design studios, and retail partnerships. The company’s dual focus on tariff insulation and consumer engagement positions it for sustained growth in a volatile trade environment.
Sources: ScanX News, Arabian Post, Capital Market News
Advertisement
Advertisement
