Archive · 2 Sep 2025
US Tariffs Threaten India's Diamond Industry, Job Losses Expected
Imagine India cutting and polishing most of the world's small diamonds.
Then, the US put a 50% tax on these diamonds from India.
This is like a big problem for Indian diamond businesses, especially in Surat.
Factories might close, and people could lose their jobs.
Diamond makers are now worried and are looking for other places to sell their diamonds, like in the Middle East.
The Indian government is trying to help by asking for special rules to save jobs.
The US is now talking about imposing reciprocal tariff on Indian products and the industry may have to deal with the consequences starting in February 2026.
The US imposed a 50% tariff on polished diamonds imported from India.
The tariff threatens Surat's diamond cutting and polishing industry, a major global hub.
About 40% of India's polished diamond exports go to the US annually.
Industry figures predict potential job losses and factory shutdowns, especially after February 2026.
The industry is seeking alternative markets and government aid to mitigate the impact.
- Who
- Indian diamond industry, US government, artisans in Surat
- What
- 50% US tariff on polished diamonds impacting India's diamond industry
- When
- Tariff imposed in August 2025, potential impact from February 2026
- Where
- India (Surat, Mumbai), US
- Why
- US tariffs threaten India's diamond exports and the livelihoods of diamond workers
- Event
- 50% US tariff on polished diamond imports from India
- Industry Affected
- Indian diamond cutting and polishing industry
- Key Location
- Surat, India
- US Import Share
- 40% of India's polished diamond exports
- Anticipated Impact
- Potential job losses, factory shutdowns, and shift of manufacturing base
- Affected Zone
- SEEPZ Mumbai (1 lakh workers)
- GJEPC Demands
- DTA sales, interest moratorium
- Alternative Markets
- Far East, Middle East, UK, India
