Goldiam implements Strategic U.S. Casting Model to Neutralize Tariff Impact

Goldiam International Ltd. (NSE: GOLDIAM), a global exporter of diamond jewellery, announced the successful implementation of a proactive manufacturing strategy that insulates its exports from the recently imposed 50% U.S. tariff on Indian jewellery imports.

Navigating Tariff Headwinds with U.S. Casting

Effective August 27, 2025, the United States raised tariffs on several Indian export categories - including lab‐grown and natural diamond jewellery - from the earlier ~16% (5.5% import duty + 10% tariff) to a steep 56% (5.5% duty + 50% tariff). This policy shift created significant challenges for Indian jewellery exporters.

Goldiam has responded swiftly with a U.S.‐origin casting model, a globally accepted and compliant approach that effectively mitigates tariff exposure:

- Through its U.S. subsidiary, Goldiam now casts raw gold into unfinished jewellery pieces within the United States.

- These castings are then shipped to India for finishing, polishing, and diamond setting.

- The final jewellery is re‐exported to the U.S., where it qualifies for tariff exemptions under U.S. Customs rules.

Because the gold is bought and casted in the U.S., the product retains U.S. origin status. As a result, no tariff applies to the gold component, and instead 5.5% duty is levied on the incremental value addition (diamonds and labour). This ensures Goldiam protects its margin profile, sustains volumes, and maintains a clear cost advantage over smaller and less organized peers.

The hybrid manufacturing model‐ combines global cost efficiency with regulatory compliance, reinforcing Goldiam's position as a trusted supply partner to leading U.S. retailers.

B2C Expansion - ORIGEM

In parallel, Goldiam is rapidly scaling its B2C presence in India through its lab‐grown diamond brand, ORIGEM. In just 10 months, ORIGEM has launched 7 exclusive stores across Mumbai and Bangalore, with consumer response exceeding expectations.

Backed by a professional retail leadership team, ORIGEM leverages Goldiam's three decades of global design expertise to deliver jewellery that is affordable, sustainable, and relevant to everyday Indian consumers.

The company has laid out ambitious retail plans, targeting approx. 70 ORIGEM stores across India within the next 18-24 months. With four distinct advantages - sourcing strength, design innovation, execution excellence, and scale potential - ORIGEM is poised to become a category‐defining disruptor in India's fast‐emerging LGD jewellery market.

Source : Equity Bulls

Keywords

GoldiamInternational DiamondJewellery USTariffs IndianJewelleryImports RiskMitigation