Surat diamond traders express concern as 50% US tariffs hit exports

The diamond industry in Gujarat's Surat is facing a severe crisis due to the imposition of a 50 per cent tariff by the United States on Indian diamond imports.

Speaking to ANI, diamond trader Umesh Munjapara and Kiran Suthar have reported that all their orders from the US are being cancelled, and new orders are not being placed, causing significant problems in the business.

Umesh Munjapara stated that traders are now looking to expand their businesses beyond the US, exploring opportunities in the domestic market and other countries.

Umesh said, "The diamond business has been affected a lot. All our orders from America are getting cancelled, and new orders are not coming in, causing a lot of problems in the diamond business... Currently, we are exploring opportunities to expand our business beyond the United States, where we can enter the global market and meet the requirements of our customers. We are working on all that..."

 

The industry, which employs over 800,000 skilled artisans, is heavily reliant on the US market, accounting for approximately 32 per cent of India's diamond exports.

"The 50 per cent tariff imposed by the Trump government has made diamonds very expensive... I want to emphasise that it is best to keep this business separate from personal matters. The Trump government wants to pressure India by imposing a 50 per cent tariff, which is wrong, and we want both India and America to meet and find a solution... We are monitoring where it is sold in India and the countries to which it is exported. We have left America for now..." he added.

Another diamond trader, Kiran Suthar, also expressed similar problems, stating that there has been no new order for the last week. He further stated that traders are now attempting to operate in the domestic market and in countries other than the US.

Kiran Suthar said, "Since the 25 per cent tariff was imposed, there were problems, but some exports were going on. But since the 50 per cent tariff is imposed, the whole middle-class business, their exports and their work, which used to run directly from the US, have suddenly come to a complete stop... The customers there have overstocked since the 50 per cent tariff was going to be imposed... There are no new orders for one week... The customers are also unhappy with their government because their goods are getting expensive... Currently, our exports to the US have been halted due to the tariff. India's jewellery market is also huge; we are making inroads in the domestic sector, and the response is also positive. We are trying in other countries as well."

The Gem and Jewellery Export Promotion Council (GJEPC) is working to reduce dependence on the US market by scouting new markets in the Middle East, Europe, and Latin America.

The GJEPC has sought relief measures from the government, including allowing duty-free sales of goods manufactured in Special Economic Zones (SEZs) and providing interest moratoriums for diamond companies.

"There too, export is increasing and work will also increase. We are not just relying on the US. A 50 per cent tariff is a very big problem for the jewellery and diamond industry. Big orders have been cancelled... From manufacturing to trading, everyone is facing problems... The US tariff pressure is not going to make any difference. For us, the nation comes first. Business is also important, but we will find some new scope... We do not blame the government for not negotiating..." he added.

On August 27, the 50 per cent tariff imposed by the US on India came into effect. The US President imposed 25 per cent tariffs initially and then imposed an additional 25 per cent on India as a punishment for buying oil from Russia.

Industry experts have also noted that 50 per cent tariffs will impact trade, especially in the sectors on which tariffs are imposed and that these sectors will suffer trade losses in the US, which will have an impact on industries such as textiles, Chemicals, and machinery.