Indian diamond exporters seek new markets amid US tariff shock
A sudden 50% tariff on Indian diamond exports to the US—effective since August 27, 2025—has shaken up the industry.
With diamonds making up over half of India's gems and jewelry exports, and the US buying nearly a third, exporters are quickly looking for new ways to stay competitive.
Exporters eye Europe, Southeast Asia, Middle East as fresh markets
Industry leaders at this year's Delhi Jewellery & Gem Fair indicated that exporters are planning to rely less on the US. Instead, they're exploring Europe, Southeast Asia, and the Middle East as fresh markets.
One workaround? Sending semi-finished diamonds to places like Oman for final touches before shipping them onward.
Latin America and Eastern Europe are also on their radar as potential growth spots.
Small businesses in Surat bear the brunt
The new tariffs have hit small businesses in Surat hard—this city handles over 80% of India's diamond exports.
Still, there's optimism: India processes about 90% of the world's diamonds.
The sector is under pressure right now, but spreading out exports could help keep things strong in the long run.