In the bustling city of Surat, the “diamond capital of the world,” entire neighborhoods depend on one thing – the sparkle of cut and polished diamonds. But now, that sparkle is dimming.

From August 27, 2025, the United States will slap a 50% import tariff on Indian jewellery and diamonds. For a country that sends over one-third of its polished diamonds to the U.S., this is nothing short of a gut punch.

Six years ago, India’s diamond exports were worth $23.8 billion. Today, that number has already dropped to $13.2 billion. And experts warn it could soon slip to $12 billion – or even less – once the new tariffs hit.

The Human Cost

Behind these numbers are real people. In Saurashtra’s small cutting workshops, where the hum of polishing wheels used to run late into the night, silence now fills the air.
Nearly 100,000 workers have already been laid off this year. Fathers can’t pay school fees, families are skipping meals, and entire communities are holding their breath. If the trend continues, another 125,000 people could lose their jobs in the months ahead.

For many of these artisans, diamond cutting isn’t just a job – it’s a craft passed down through generations. Losing it means more than losing income; it means losing identity.

Factories Under Pressure

The math is brutal. Margins in this industry were already razor-thin. A 25% tariff would hurt; 50% is a breaking point. Factories in Surat have cut production by 30–35%, and exports are already down 25% compared to last year.

Owners are scrambling to find buyers in Europe and the Middle East, where demand is growing, but the shift is slow. Meanwhile, competitors in China, Vietnam, Turkey, and Thailand can ship to the U.S. with little or no tariff at all.

A Fight for Survival

India’s Gem & Jewellery Export Promotion Council is in damage-control mode – lobbying for government support, tax relief, and softer loans to help keep the industry alive. Behind closed doors, Indian and U.S. officials are negotiating, but there’s no guarantee of success.

If the talks fail, this could be a turning point. The world’s diamond polishing crown could slip from India’s head, and the livelihoods of millions could vanish into history.

💎 The Bottom Line: This isn’t just about tariffs or trade wars – it’s about people, families, and a way of life. For the artisans of Surat, the next few months will decide whether the hum of the polishing wheel returns, or falls silent forever.