Surat’s Diamond Industry Shaken Badly By Trump Tariffs
India-West News Desk
NEW DELHI – A wave of anxiety has gripped the diamond polishing hub of Surat, as hefty U.S. tariffs threaten to undermine the country’s gem and jewelry exports, putting at risk the livelihoods of thousands of workers.
The United States, which takes more than 30% of the South Asian nation’s gem and jewellery exports, set a 27% reciprocal tariff on it on April 3, at a time when demand is softening in other key markets such as China, the Middle East, and Europe.
Surat, in the home state of Prime Minister Narendra Modi, processes and polishes more than 80% of the world’s rough diamonds, and India accounts for nine in every 10 diamonds processed globally, Reuters said.
Business has ground to a halt in its teeming diamond market, where more than 10,000 traders and brokers gather each day, as the industry tries to figure out how matters will evolve in the coming months.
Conditions are worse than during the 2008 financial crisis, when the industry was plagued by fears of a prolonged recession, one trader told Reuters.
A slowdown in the industry will hit all manufacturers, but smaller players are expected to be impacted the most.
Gems and jewellery are India’s third largest export to the United States, after engineering and electronic goods, and employ millions of workers, including artisans.
Poorer business prospects also raise questions about the future of the Surat Diamond Bourse, inaugurated by Modi in 2023 to create thousands of new jobs and serve as a trade hub.
Built over 6.6 million square feet, it was touted as the world’s largest office building, surpassing the Pentagon.
The industry will seek alternative markets to compensate for the loss of U.S. demand, but no other country will be able to replace the U.S. market, diamond dealers said.
Exporters are making last-minute efforts to ship as much as possible to the United States before its new tariffs take effect, while orders that cannot be delivered earlier may be cancelled or put on hold, Reuters reported.
Samay
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India needs to start looking beyond the USA for partners. Perhaps it needs to focus more on internal trade. Also, India to help its own people, may need to look to expand for its own economic growth and security in a fast changing world. Just like how the USA is looking to take Greenland/Canada/Panama, India should start seriously looking at taking Sri Lanka, Maldives, and Iran. Of course, the people living here would automatically get Indian Citizenship. But if they are against joining the Indian Union, they are more than welcome to emigrate to other countries. Access to cheap oil will really help improve India’s economy.
April 4, 2025