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.
Timeline of Tariff Increases
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Tariffs were at 10%
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They rose to 25% on Thursday
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They will jump to 50% on August 27
Why This Matters
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Over 90% of the world’s polished diamonds are processed in India
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The US is India’s biggest market for polished stones
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Many US-based buyers have already paused new purchases
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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
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At 10% to 15%, margins could be adjusted across the supply chain
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At 25%, deals were already becoming difficult
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At 50%, the trade is at a breaking point
How This Affects You
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If you're an exporter, your US orders may shrink or stop
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If you're a US buyer, you may see fewer shipments and higher prices
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Margins in diamond trading are often below 25% — the tariff wipes out profits
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Some companies are now considering alternate markets or reducing staff
What Triggered This?
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Trump cited India’s continued imports of Russian oil as the reason
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The announcement followed a warning he made on Truth Social on July 31
What’s Next?
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A US trade team is expected to visit India later this month
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Many hope for a compromise or rollback
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No relief is expected before the August 27 deadline
Questions You Should Be Asking
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Can you still profit under these rates?
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Should you shift your focus to non-US buyers?
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Are your logistics partners ready for the shipping rush?
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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.
