Editor’s Note
This analysis examines how proposed U.S. tariffs could reshape the global diamond trade, focusing on Mumbai’s pivotal role. The report highlights the deep economic interdependence between the two nations and the potential consequences of shifting trade policies.
This report analyzes the potential impact of proposed US tariffs under a potential second Trump administration on India’s diamond trade and the broader economic implications for both nations. Industry experts from Mumbai, a global hub for diamond cutting and polishing, provide insights into the complex supply chain dependencies.
The analysis highlights that India processes over 90% of the world’s diamonds by volume. Any significant tariff on polished diamond imports into the US would not only threaten hundreds of thousands of jobs in India’s Gujarat and Maharashtra states but also create supply shortages and price volatility in the US market. The interconnected nature of the global diamond pipeline means retaliatory measures or trade shifts could impact ancillary industries in both countries, from logistics to banking services tied to the gem trade.