Trump Tariffs, Soft Market: Indian Diamond Exports Plunge To 20 Year Low

India-West News Desk

NEW DELHI – India’s exports of cut and polished diamonds have plunged to their lowest level in nearly two decades in the 2024–25 fiscal year, dragged down by weak demand from key markets and the impact of fresh U.S. tariffs introduced under former President Donald Trump.

Exports of polished diamonds — which typically account for nearly half of India’s gem and jewelry shipments — fell 16.8% year-on-year to $13.3 billion, according to data from the Gems and Jewellery Export Promotion Council.

The decline reflects ongoing economic uncertainty in the trade wars and tariffs initiated by the Trump administration. The U.S. is India’s largest diamond market.

As demand softened, Indian diamond processors also scaled back rough diamond imports, which dropped 24.3% to $10.8 billion, the trade body said.

Though overall exports slumped for the year, March saw a brief rebound, with gem and jewelry exports rising 1% year-on-year to $2.56 billion. This was largely driven by a surge in last-minute shipments to the U.S., as buyers and sellers raced to beat new tariffs.

“U.S. buyers were loading up in March before the tariffs kicked in,” GJEPC Vice Chairman Shaunak Parikh told Reuters. “Indian exporters were also rushing to ship out U.S. orders first, so they wouldn’t get hit with those extra costs.”

The Trump-era tariffs on luxury goods, including diamonds and jewellery, have added further strain to an already challenging global market. A major Mumbai-based exporter told Reuters that a recovery is unlikely this year, with the new trade restrictions and market volatility continuing to shake buyer confidence.