Archive · 23 Dec 2025
US Tariffs Hurt India's Diamond Exports
The United States has put high taxes on diamonds from India, which has caused big problems for the diamond industry in Surat, India.
Many workers have lost their jobs, and some factories have closed.
Workers like Chotu Kumar, who used to earn good money, are now struggling to make ends meet.
The industry is trying to find new markets and switch to lab-grown diamonds, but it's not enough to fix the problem.
The government is being asked to help by talking to the US and making policies to support the diamond industry.
Experts say that to reduce the impact of these taxes, India should look for new markets in Europe, the Middle East, and other places.
This could help the industry grow again and protect jobs.
US tariffs on Indian diamonds have caused a sharp decline in exports to the US, falling from $5.93 billion in 2023 to $2.42 billion in 2025.
Over 1.5 lakh diamond workers in Surat have lost their jobs due to the tariffs, with many factories shutting down.
Workers' earnings have plummeted from ₹28,000 a month to just ₹13-14 per piece, making it hard to cover basic living costs.
The industry is trying to pivot to lab-grown diamonds and explore new markets, but these efforts have not been enough to offset the downturn.
Experts suggest diversifying markets to Europe, the Middle East, and other regions to cushion the impact of the tariffs.
- Who
- Diamond workers in Surat, India
- What
- US tariffs on Indian diamonds causing job losses and factory shutdowns
- When
- Since August 2025, with significant impact in 2024 and 2025
- Where
- Surat, India, the diamond capital of India
- Why
- Steep US tariffs making Indian diamonds less competitive in the American market
- US Tariffs
- Steep tariffs imposed by the US on Indian diamonds
- Exports to US
- Fell from $5.93 billion in 2023 to $2.42 billion in 2025
- Job Losses
- Over 1.5 lakh diamond workers in Surat have lost jobs
- Factory Shutdowns
- 15-20% of small diamond factories are now shut
- Worker Earnings
- Plunged from ₹28,000 to ₹13-14 per piece
- Lab-Grown Diamonds
- Lower margins compared to natural stones
- Government Relief
- Exporters seek diplomatic engagement and policy support
- Market Diversification
- Experts suggest exploring Europe, Middle East, and other regions
Sources
US tariffs hit India’s diamond exports hard, Surat workers bear the brunt
Tariffs impacts: Indian leather exporters incurring business losses in US, staring at sharp decline in shipments
Diversifying markets key to cushioning tariff blow, experts suggest
Coping with US tariffs
