Surat, Gujarat | August 14, 2025 – The Trump Tariff Crisis Hits Surat Diamond Market with unprecedented force, threatening the livelihood of thousands of workers and shaking the foundations of the world’s largest diamond cutting and polishing hub. Following the United States’ decision to impose higher tariffs on diamonds and gems imported from India, more than one lakh jobs are now at risk as export orders dry up and production units shut down.
Trump Tariff Crisis Hits Surat Diamond Market with 50% Import Duty
The US government has raised the total tariff on cut and polished diamonds from India to 50%, including a recently added 25% hike. This steep increase has doubled export costs, forcing many Surat-based companies to halt new orders. For small and medium-sized units, the Trump Tariff Crisis Hits Surat Diamond Market harder than ever, making it nearly impossible to remain competitive.
Exports Plunge Amid Trump Tariff Crisis
During the last financial year, exports of cut and polished diamonds from India to the US dropped from $9.86 billion to $4.81 billion, a fall of almost 45%. The Trump Tariff Crisis Hits Surat Diamond Market not just in numbers but in livelihoods, as thousands of artisans face uncertain futures.
Massive Job Losses in Surat’s Diamond Industry
Industry experts warn that 1.25 to 2 lakh jobs could vanish if the situation continues. Many small-scale units have already shut their doors, and migrant artisans from Saurashtra and North Gujarat are returning to their villages in search of work. The Trump Tariff Crisis Hits Surat Diamond Market hardest at the grassroots, where daily wage workers are bearing the brunt.
Industry’s Fightback Strategy
Exporters are negotiating with US buyers to share the extra costs or delay shipments. Some are exploring new markets in Europe, the Middle East, and Latin America to offset losses. Lab-Grown Diamonds (LGDs) are emerging as a sustainable, cost-effective alternative – one of the few silver linings as the Trump Tariff Crisis Hits Surat Diamond Market.
Government Intervention Needed
Trade bodies and industry leaders are appealing to the government for relief measures, including financial aid, tax benefits, duty drawback schemes, and faster trade negotiations. Without strong policy action, the Trump Tariff Crisis Hits Surat Diamond Market could spiral into a long-term economic setback for Gujarat’s gem and jewellery sector.
Path Forward for Surat’s Diamond Industry
- Diversify export destinations beyond the US
- Strengthen domestic diamond demand and retail networks
- Boost production and marketing of lab-grown diamonds
- Invest in advanced cutting and polishing technologies to reduce costs
Also read: What is a Tariff in Simple Terms? A Complete Guide for Beginners
Conclusion
The Trump Tariff Crisis Hits Surat Diamond Market in a way that threatens both its global dominance and the livelihoods of lakhs of families. A coordinated approach between the government, exporters, and workers is essential to restore stability and ensure that Surat’s diamond industry shines again on the world stage.