{"id":40646,"date":"2025-09-03T11:13:07","date_gmt":"2025-09-03T05:43:07","guid":{"rendered":"https:\/\/dailynewsindia.co.in\/index.php\/2025\/09\/03\/surat-diamond-crisis-exports-wrecked-by-brutal-us-tariffs\/"},"modified":"2025-09-03T11:13:07","modified_gmt":"2025-09-03T05:43:07","slug":"surat-diamond-crisis-exports-wrecked-by-brutal-us-tariffs","status":"publish","type":"post","link":"https:\/\/dailynewsindia.co.in\/index.php\/2025\/09\/03\/surat-diamond-crisis-exports-wrecked-by-brutal-us-tariffs\/","title":{"rendered":"Surat Diamond Crisis: Exports Wrecked By Brutal US Tariffs"},"content":{"rendered":"
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Surat (Gujarat) [India], September 3:<\/b> The sparkle has dimmed in Surat. America\u2019s 50% tariff on Indian diamonds has hit the city\u2019s famed cutters and polishers where it hurts most: cancelled orders, ballooning costs, and an uncertain future.<\/span><\/p>\n

US Tariffs Choke Surat\u2019s Lifeline<\/b><\/h3>\n

On August 27, Washington\u2019s new 50% tariff on Indian diamond imports officially kicked in. The result was immediate. Traders in Gujarat\u2019s Surat, the world\u2019s largest diamond polishing hub, saw their US orders vanish overnight.<\/span><\/p>\n

Umesh Munjapara, a long-time trader, didn\u2019t mince words. \u201cAll our orders from America are getting cancelled, and new ones aren\u2019t coming in. The business is badly affected,\u201d he stated.<\/span><\/p>\n

His colleague, Kiran Suthar, echoed the crisis. \u201cExports have come to a complete stop. For the last week, there hasn\u2019t been a single new order,\u201d he said.<\/span><\/p>\n

For an industry that employs over 800,000 artisans and relies on the US for nearly one-third of exports, the blow is seismic.<\/span><\/p>\n

A Punishment For Oil, Paid In Diamonds<\/b><\/h3>\n

This isn\u2019t just trade friction. The Trump administration first slapped a 25% tariff, then doubled it to 50% as \u201cpunishment\u201d for India buying oil from Russia. That political gamble is now a dagger in Surat\u2019s economy.<\/span><\/p>\n

Traders say US customers are also angry. \u201cTheir goods are getting too expensive. They had overstocked, anticipating tariffs, but now fresh orders have stopped,\u201d Suthar said.<\/span><\/p>\n

Looking Beyond America<\/b><\/h3>\n

Surat\u2019s diamond merchants are scrambling to pivot. Munjapara says the focus is shifting to domestic buyers and alternative markets. \u201cWe are exploring opportunities in India, the Middle East, and other regions. We\u2019ve left America for now,\u201d he admitted.<\/span><\/p>\n

The <\/span>Gem and Jewellery Export Promotion Council (GJEPC)<\/b> is pushing the same line. The council is scouting new markets in Europe, Latin America, and the Gulf. At the same time, it has sought relief from New Delhi: duty-free sales from Special Economic Zones (SEZs) and interest moratoriums for stressed companies.<\/span><\/p>\n

\u201cNation First\u201d, Even If Diamonds Suffer<\/b><\/h3>\n

Despite the hardship, several traders refuse to blame the Indian government. \u201cThe US tariff pressure is not going to make any difference. For us, the nation comes first. Business is also important, but we will find a new scope,\u201d one trader said.<\/span><\/p>\n

That resilience comes with realism. With big orders cancelled and workshops running below capacity, the pressure on Surat\u2019s workforce is intense. Smaller operators who depend on US middle-class buyers are the worst hit.<\/span><\/p>\n

Ripple Effects Beyond Diamonds<\/b><\/h3>\n

Industry experts warn that tariffs of this scale are not just a diamond story. \u201cThe 50% duty will hit textiles, chemicals, and machinery too,\u201d said one analyst. The United States is India\u2019s biggest export destination, and every sector exposed to the tariff wall is staring at lost revenues.<\/span><\/p>\n

India\u2019s Options<\/b><\/h3>\n

For New Delhi, the crisis is both a challenge and an opportunity. Diversifying trade partners is long overdue, and Surat\u2019s pivot to Middle Eastern and domestic buyers shows the direction. But the immediate pain is undeniable.<\/span><\/p>\n

If <\/span>diamonds worth billions<\/b><\/a> stop flowing to America, India\u2019s export numbers take a hit. The human cost, in terms of lost jobs for artisans and small traders, could be even higher.<\/span><\/p>\n

\u2013<\/p>\n

Washington slaps a 50% tariff to punish India for buying oil from Russia, and our workers in Surat pay the price. Eight lakh artisans now face uncertainty because Uncle Sam wants to flex its muscles. The irony? America\u2019s own buyers are fuming because diamonds just got pricier.<\/p>\n

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India\u2019s diamond story is bigger than one market. If America doesn\u2019t want our sparkle, fine; we\u2019ll sell it to those who do. And yes, we\u2019ll buy oil where it suits us, not where Trump dictates.<\/p>\n<\/blockquote>\n

PNN News<\/b><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Surat (Gujarat) [India], September 3: The sparkle has dimmed in Surat. America\u2019s 50% tariff on Indian diamonds has hit the city\u2019s famed cutters and polishers where it hurts most: cancelled orders, ballooning costs, and an uncertain future. US Tariffs Choke Surat\u2019s Lifeline On August 27, Washington\u2019s new 50% tariff on Indian diamond imports officially kicked…<\/p>\n

Read More “Surat Diamond Crisis: Exports Wrecked By Brutal US Tariffs”<\/span> »<\/a><\/p>\n","protected":false},"author":1,"featured_media":40647,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[635],"class_list":["post-40646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-national"],"_links":{"self":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/40646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=40646"}],"version-history":[{"count":0,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/posts\/40646\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media\/40647"}],"wp:attachment":[{"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=40646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=40646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailynewsindia.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=40646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}