As the 50 per cent US tariffs on the Indian imports came into effect on Wednesday, the stakeholders of the diamond industry in Surat believe that the market will be affected due to US’ decision only for a short period of time as India controls 90% of diamond production.
Jagdish Khunt, who is the President of Surat Diamond Association, said that the tariffs will affect the Surat diamond industry for a short period of time. He said that no other country can replace India as 90 per cent of the world’s diamond production is done in the country.
“There is no doubt that 50% US tariff will affect Surat diamond industry, but the effect will be short-term, not long-term. No other country can replace India, as we account for 90% of the world’s diamond production (cutting and polishing of natural diamonds). The US will have to remain dependent on India,” he said.
Jayesh Patel, a diamond manufacturer and trader, believes that every country has its own policy, and as the US is a large market, the diamond industry will face certain challenges. He further stated that if the tariffs continue in the future then they will find markets in other countries.
“Every country has its own policy. We will have to see how it goes. Since the US is a very large market, we may face some challenges due to tariffs; however, there are also European nations and Russia where we can sell. The PM is right in saying that we should not bow down before any country. If this continues, we might have to scale down our business and find markets in other countries,” Jayesh Patel told ANI.
Meanwhile Trump’s 50% tariffs kicked in today, posing significant challenges for India’s low-margin and labour-intensive export sectors. This follows the draft notice published by the US Customs and Border Protection (CBP) that stated that the order would come in effect from August 27. According to the notice, the additional duties are being imposed to give effect to the President’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation. The higher duties are applicable to all Indian products that are either entered for consumption in the U.S. or withdrawn from warehouses for consumption. With this, the 50 per cent tariffs on India’s imports to the U.S. are now in effect.
