US Tariffs Hit Gujarat's Diamond Industry Hard

Nearly 100,000 diamond cutting and polishing workers in Gujarat’s Saurashtra region have lost their jobs since the United States imposed a 10% baseline tariff in April, according to Gujarat’s Diamond Workers Union.

The Ripple Effect of Increased Tariffs

The situation worsened when the tariff was first raised to 25% and then doubled to 50%, accelerating layoffs, especially in small units across Bhavnagar, Amreli, and Junagadh. These units, which primarily handle job work from larger companies, are facing a severe downturn as US buyers delay or cancel orders.

Search for Alternatives Amidst Job Losses

While some displaced workers are finding employment in the lab-grown diamond (LGD) sector, concerns loom over the potential impact of the 50% tariff on LGDs. India, the world’s largest diamond exporter, is at a crossroads, with industry leaders urging the government to negotiate bilateral trade agreements and provide export incentives to mitigate the crisis.

The Global Perspective

With India exporting gems and jewellery worth $10 billion to the US, the tariffs threaten not just jobs but the very fabric of the global diamond trade. The industry's plea for quicker GST refunds and interest subsidies highlights the urgent need for intervention to save thousands of livelihoods.