The diamond hub of Surat is reeling under a severe business crisis after the United States imposed a 50% tariff on Indian diamond imports, leading to widespread order cancellations and mounting financial strain on traders.
Diamond traders, including Umesh Munjapara and Kiran Suthar, reported that existing orders from the US have been scrapped and no fresh consignments are being placed, forcing the industry to explore alternatives in domestic and non-US markets.
“The diamond business has been hit badly. All our orders from America are being cancelled, and new ones are not coming in. We are now working to expand into other countries and strengthen our presence in the domestic market,” said Umesh Munjapara.
Employing over 800,000 artisans, the industry depends heavily on the US, which accounts for nearly 32% of India’s diamond exports. Traders fear that the steep tariff has not only disrupted exports but also made Indian diamonds unaffordable for American buyers.
Echoing similar concerns, Kiran Suthar said, “When the 25% tariff was imposed, exports slowed but continued. Since the 50% tariff, everything has come to a complete stop. For the past week, there have been no new orders. Customers in the US are also unhappy, as their goods are getting more expensive. We are now focusing on India and other global markets.”
The Gem and Jewellery Export Promotion Council (GJEPC) has begun identifying new markets in the Middle East, Europe, and Latin America while seeking government relief measures such as duty-free sales from Special Economic Zones (SEZs) and interest moratoriums for affected companies.
The crisis stems from the US President’s move to double tariffs on India—initially 25%, later raised to 50%—in retaliation for New Delhi’s continued purchase of Russian crude oil. Industry experts warn the fallout could extend beyond gems and jewellery to sectors like textiles, chemicals, and machinery, all of which may face trade losses.
Despite the setback, traders remain optimistic about diversifying markets. “The US tariff is a big challenge, but we are confident of finding new opportunities. Business is important, but the nation comes first,” said Munjapara.
