By Shumaila Aslam
Bureau Chief, Pakistan
Scandinavian News Agency
The global diamond industry may face serious disruption as former U.S. President Donald Trump pushes for steep tariffs on imports from India the world’s largest supplier of cut and polished diamonds.
Over 2 million Indian workers are employed in the diamond cutting and polishing sector, which supplies 14 out of every 15 cut diamonds sold around the world. But Trump’s proposal to impose 50% tariffs on Indian imports threatens to shatter this dominance.
According to the Gem and Jewellery Export Promotion Council (GJEPC), India exported $4.8 billion worth of cut and polished diamonds to the United States during the 2024–25 fiscal year more than one-third of the country’s total diamond exports, which reached $13.2 billion.
While the motivation behind Trump’s tariff plan remains under political debate, its impact on an already struggling industry is undeniable. India’s diamond sector has been hit hard in recent years due to reduced global demand, currency fluctuations, and rising labor costs.
Should these tariffs go into effect, thousands of small and mid-sized cutting units especially in Gujarat’s Surat, the heart of India’s diamond hub — may be forced to shut down, triggering mass unemployment and destabilizing the global diamond supply chain.
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