US tariffs hit diamond industry; 100,000 jobs lost in Saurashtra
What's the story
The Indian diamond cutting and polishing industry is reeling under the impact of steep US tariff hikes. The tariffs have increased from 10% to a staggering 50% in just a few months, resulting in nearly 100,000 job losses in Gujarat's Saurashtra region. Most of the layoffs have been witnessed in small units across Bhavnagar, Amreli, and Junagadh after US customers canceled or delayed orders, according to ET.
Impact on workers
Job losses increased sharply in last 10 days
Bhavesh Tank, vice president of the Gujarat Diamond Workers Union, told ET that the job losses have increased sharply in the last 10 days as tariffs were raised first to 25% and then doubled. He added that these small units employ between 300,000-400,000 people who were already struggling with slow demand from US and Chinese buyers. "The April tariff hike created uncertainty, drying up cutting and polishing work. Workers earning ₹15,000-₹20,000 per month have been let go," Tank said.
Industry silence
Displaced workers finding jobs in lab-grown diamond sector
The larger diamond firms, however, are mum about the impact of these tariff hikes, fearing backlash from stakeholders, Times Now reported. Some displaced workers have found jobs in the lab-grown diamond (LGD) sector, but industry members warn that LGDs could also be affected by tariffs. Jayantibhai Savalia, chairman (Gujarat region) of the Gem & Jewelry Export Promotion Council (GJEPC), said LGDs are also heavily dependent on the US market and could face job losses if the 50% tariff affects them.
Urgent action
Diamond industry urges government to expedite trade agreement talks
The diamond industry has urged the government to expedite trade agreement talks with the US, enhance export incentives, provide interest subsidies, and expedite GST refunds. Arvind Gupta, MD of Gallant Jewelry, warned that high tariffs would "dent volumes, squeeze margins and displace thousands of jobs." "If no viable solution emerges, units may be forced into drastic decisions," Vijay Kumar Mangukiya, MD of Dhani Jewels, also said.