Editor’s Note
This article highlights the severe impact of recent U.S. tariffs on India’s diamond industry, centered in Surat. The job losses underscore how global trade policies can directly affect regional economies and livelihoods.
Approximately 100,000 people employed in diamond cutting and polishing have lost their jobs. This industry is large-scale in Saurashtra, with Surat considered its center. This sector has been a source of prosperity in this part of Gujarat, but in April, Donald Trump imposed an additional 10% tariff on diamonds.
The diamond industry creates employment on a massive scale. This sector employs a large number of laborers and skilled artisans in work ranging from diamond cutting to polishing. However, a major crisis has emerged for their employment. All this has happened due to Donald Trump’s tariff war whims. Approximately 100,000 people engaged in diamond cutting and polishing have lost their jobs. This industry is large-scale in Gujarat’s Saurashtra region. Surat is considered its primary center. This has also been a reason for prosperity in this part of Gujarat, but in April, Donald Trump imposed an additional 10% tariff on diamonds.
Since then until now, there has been chaos here, and 100,000 people have lost their jobs. Bhavesh Tank, Vice President of the Gujarat Diamond Workers Union, told The Economic Times that more jobs have been lost in the past 10 days. This happened because Donald Trump increased the tariff from 10% to 25% and then raised it to 50%. The diamond industry is also large-scale in Bhavnagar, Amreli, and Junagadh. Diamond orders from American clients have been suspended or canceled altogether. As a result, work has decreased, and it is not possible to keep workers in the industry idle. About 300,000 to 400,000 people work in this industry.
Currently, one-fourth of them are in crisis. If this situation continues, the turmoil in the diamond industry could increase further. Along with reduced purchases in the American market, orders from China are also decreasing. This industry employed a large number of staff with salaries up to 20,000 rupees, who are now being asked to leave. Sources say that major companies are currently avoiding commenting on this matter. Some hope that this crisis will subside soon and a trade deal will be reached between the two countries. However, they are prioritizing keeping their preparations and continuing production while reducing costs. In such a situation, it is difficult to keep workers without work.