Exporters reel as US tariffs leave India’s diamond trade dull

ALMOST A MONTH into US President Donald Trump's 50% reciprocal tariff imposition on India, the country's diamond industry struggles to stay afloat, as independent studies also predict a sluggish outlook for the sector.

- KRISHNA BAROT

A September report by CareEdge Ratings stated that if the 50% tariff is fully passed on, it will likely impact the cut and polished diamonds (CPD) segment and estimated a 1720% decline in CPD exports to the US in FY26.A statement by Akhil Goyal, director at CareEdge Ratings, said,“Tariffs increasing to 50% by a key diamond-consuming nation is expected to exacerbate the demand sluggishness in the CPD industry. The industry continues to face competition from LGDs, and there is limited offsetting potential from alternative markets, such as India and China."

The US accounts for over 40% of global polished diamond demand, and in FY25, it accounted for 37% of India's CPD exports.