Indian polished diamond exports to the US face fresh hurdles amid tariffs

Exports of Indian natural polished diamonds to the US – contributing 35 per cent of total exports in fiscal 2025 – is set to face further headwinds following the tariffs and penalty announced by the US. Reduced offtake by retailers post announcement of 10 per cent tariff on Indian exports in April 2025, brought down the share of the US in polished diamond exports to 24 per cent in the first quarter of this fiscal from 37 per cent for the same period last fiscal. Besides, the revenue of Indian diamond polishers can decrease a further 20-  per cent this fiscal to USD 10-11 billion.

Stakeholders of the Indian Gems and Jewellery sector expressed deep concern, warning of short-term disruptions, potential job losses, and rising prices for American consumers following the US announcement of a 25 per cent tariff on India, which was announced by US President Donald Trump on July 30. Trump also said India will face additional penalties for purchasing oil from Russia.

Business leaders also pointed to India’s expanding trade ties, including recent Free Trade Agreements (FTAs) with the UK, Australia, and the UAE, as a buffer against the fallout, suggesting the long-term impact may hurt trade. the US more than India.