Editor’s Note
This article examines the immediate impact of new US tariffs on key Indian export sectors, with a specific focus on the diamond industry’s resilience. While labour-intensive industries face significant pressure, stakeholders express confidence in India’s dominant market position to navigate the short-term disruption. The situation underscores the ongoing search for alternative trade strategies.
Surat (Gujarat) [India], August 27 (ANI): As the 50 per cent US tariffs on Indian imports came into effect on Wednesday, stakeholders of the diamond industry in Surat believe that the market will be affected by the US decision only for a short period, given that India controls 90% of diamond production.
Jagdish Khunt, President of the Surat Diamond Association, stated that the tariffs will impact the Surat diamond industry only temporarily. He emphasized that no other country can replace India, which accounts for 90 percent of the world’s diamond production.
Jayesh Patel, a diamond manufacturer and trader, acknowledged that every country has its own policy and that the US, being a large market, presents challenges. He suggested exploring other markets if tariffs persist.
Meanwhile, Trump’s 50% tariffs kicked in today, posing significant challenges for India’s low-margin and labour-intensive export sectors.
This follows a draft notice published by the US Customs and Border Protection (CBP) stating the order would take effect from August 27.
According to the notice, the additional duties are being imposed to implement President’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.”
The higher duties apply to all Indian products entered for consumption in the U.S. or withdrawn from warehouses for consumption. With this, the 50 per cent tariffs on India’s imports to the U.S. are now in effect.
