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Key Points

Surat diamond industry leaders believe new US tariffs will only cause short-term market disruptions. India's dominance in global diamond production makes the country irreplaceable in the supply chain. Traders are already exploring alternative markets in Europe and Russia to mitigate potential losses. The industry remains confident that the US will continue to depend on Indian diamonds despite the tariff increases.

Key Points: Surat Diamond Traders Confident Trump Tariffs Won't Hurt India Long-Term

  • India controls 90% of global diamond cutting and polishing production
  • US tariffs pose challenges but industry expects only short-term effects
  • Diamond traders exploring alternative markets in Europe and Russia
  • Industry remains confident due to India's irreplaceable market position
3 min read

US will remain dependent on India, Surat Diamond Traders confidant of riding out Trump Tariff effects

Surat diamond industry leaders say US remains dependent on India's 90% global diamond production despite new 50% tariffs, predicting only short-term market effects.

"No other country can replace India, as we account for 90% of the world's diamond production - Jagdish Khunt, Surat Diamond Association President"

Surat, August 27

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.

- ANI

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Reader Comments

S
Sarah B
While I appreciate the confidence, we should also consider diversifying our markets. Over-dependence on any single market makes us vulnerable. Good that they're looking at Europe and Russia as alternatives.
Priya S
My uncle works in Surat's diamond industry. They're worried about short-term job losses but confident about long-term recovery. Hope the government supports them during this transition period.
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Michael C
This is why we need to strengthen domestic consumption too. Indians are among the largest diamond buyers globally - let's focus on our own market rather than always looking westward.
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Aditya G
Trump's policies come and go, but Surat's diamond expertise is permanent. The craftsmanship and quality we provide cannot be matched anywhere else in the world. This too shall pass!
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Nisha Z
While I support our diamond industry, I hope the government is working on diplomatic solutions. Trade wars hurt ordinary workers the most. Let's hope for sensible negotiations from both sides.

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