Diamond City stares at gloomy paydays amid Trump tariff cloud

In Surat, 37-year-old Anant Patel currently earns more in a single day ferrying passengers in his cab through the city’s tangled traffic than others do shaping diamonds, once considered too exorbitant.

- AJINKYA KAWALE

Operators of polishing units are charting cost-cutting plans after Diwali, battered by a collapse of more than 40% in demand since the US slapped 50% tariffs

Patel knows the grind of diamond polishing well — he once sat hunched over a table under harsh lights, coaxing brilliance from rough stones. But he counts himself lucky for having walked away years ago. Now, as the weight of high US tariffs bears down on India’s diamond capital, the future of the trade looks clouded.

His peers remain in the storm’s eye, facing uncertainty over pay as demand for diamonds falters.

Operators of polishing units are drawing up cost-cutting plans after Diwali, battered by a collapse of more than 40 percent in demand since the US slapped 50 per cent tariffs on Indian exports in August. Salaries, they warn, may reduce by ₹5,000-₹10,000 a month, around 10-20 percent of income for each worker.

“There is no other option than cutting monthly payouts,” says a diamond polishing unit owner, who employs 50 people. “We are already scaling down operations with so little work. We will not fire skilled workers since rehiring them is a major challenge.”