According to Gujarat’s Diamond Workers Union (DWU), about 1,00,000 diamond workers have lost their jobs to the new US tariffs in Gujarat’s Saurashtra region.
In April 2025, the US imposed a 10% base tariff, leading to about one lakh workers engaged in diamond cutting and polishing losing their jobs, as per Bhavesh Tank, the Vice-President of DWU.
As per the Economic Times, Tank said that the job losses became even more pronounced in the past 10 days, when the 25% tariff rate was imposed and the threat of a doubled 50% rate is looming. Small units located in Bhavnagar, Amreli and Junagadh, which typically take up job work from larger companies for cutting and polishing rough diamonds, have been the most affected. Due to the newly imposed tariffs, many export orders from US buyers have either been delayed or cancelled.
“The units spread over Saurashtra, Junagadh, Bhavnagar, and Amreli employ 300,000–400,000 people. Business was deteriorating in these places as US and China offtake of diamonds was slow. But the biggest blow came from the US tariff announced in April, which created an uncertainty in the diamond trade. Since then, cutting and polishing work has dried up and workers were shown the door,” Tank said.
Tank shared that most of the affected workers made about 15,000 – 20,000 a month. With the rise of lab-grown diamonds and the increased US tariffs, India’s diamond industry is undoubtedly facing some challenging times. As Kirit Bhansali, Chairman of the Gems & Jewellery Export Promotion Council (GERJPC), told DW, the US is India’s most prominent diamond buyer, which makes the tariffs that much more imposing.
“The US is our single largest market, accounting for over $10 billion in exports — nearly 30% of our industry’s total global trade. A blanket tariff of this magnitude is severely devastating for the sector,” Bhasali shared. “For cut and polished diamonds, half of India’s exports are US-bound. With the revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain — from small workers to large manufacturers.”
Like diamonds, most Indian goods now face a 25% tariff when exported to the US. As per US President Donald Trump, the tariff will double to 50% effective August 27, 2025.
