US Hikes Tariffs On Indian Diamonds To 50% — Trade Faces Severe Shock

The US will impose a 50% tariff on Indian goods by August 27, hitting the diamond industry hard. Over 90% of global polished diamonds come from India.

The US Just Raised Tariffs on Indian Diamonds. What Does It Mean for You?

President Donald Trump has announced a 50% tariff on Indian imports, including diamonds. This new rate will go into effect on August 27.

Here’s what you need to know:

Timeline of Tariff Increases

• Tariffs were at 10%

• They rose to 25% on Thursday

• They will jump to 50% on August 27

Why This Matters

• Over 90% of the world’s polished diamonds are processed in India

• The US is India’s biggest market for polished stones

• Many US-based buyers have already paused new purchases

• Shipments are being rushed to avoid the upcoming hike

Industry Reaction

“It’s a very black day for the gem and jewelry sector,” said Kirit Bhansali, chairman of GJEPC

• At 10% to 15%, margins could be adjusted across the supply chain

• At 25%, deals were already becoming difficult

• At 50%, the trade is at a breaking point

How This Affects You

• If you're an exporter, your US orders may shrink or stop

• If you're a US buyer, you may see fewer shipments and higher prices

• Margins in diamond trading are often below 25% — the tariff wipes out profits

• Some companies are now considering alternate markets or reducing staff

What Triggered This?

• Trump cited India’s continued imports of Russian oil as the reason

• The announcement followed a warning he made on Truth Social on July 31

What’s Next?

• A US trade team is expected to visit India later this month

• Many hope for a compromise or rollback

• No relief is expected before the August 27 deadline

Questions You Should Be Asking

• Can you still profit under these rates?

• Should you shift your focus to non-US buyers?

• Are your logistics partners ready for the shipping rush?

• Can your business absorb a 50% blow?

Final Word

This isn’t just a policy change — it’s a shockwave across the global diamond trade.
If your business relies on US exports, you have just weeks to act.