The global diamond market is facing a wave of turbulence in the wake of the U.S. government’s decision to implement a 10% import duty on polished diamonds as of April 2025. The move has had a ripple effect across major processing centers, particularly Surat in India—home to nearly 80% of the world’s diamond finishing operations—where the impact has been both swift and severe.
Exports have slumped notably as a result of the tariffs, triggering alarm across the industry. India’s polished diamond exports dropped to a two-decade low of $13.3 billion in the 2024/25 fiscal year, marking a 16.8% year-on-year decrease. The Antwerp World Diamond Centre in Belgium has reported a significant reduction in shipments, with daily exports falling to just one-seventh of normal levels.
The Gem & Jewellery Export Promotion Council (GJEPC) has voiced strong concern, describing the policy shift as an “immense strain” on exporters and calling on the Indian government to engage in bilateral trade negotiations with the U.S. to seek relief for the sector.
Compounding the issue is the broader slowdown in the luxury market, particularly in China, where economic challenges have dampened consumer spending on high-end goods. Additionally, the rise of lab-grown diamonds presents a competitive threat, offering consumers a more affordable alternative to natural stones.
In response to the crisis, De Beers Group is collaborating with the Indian government to advocate for a zero-tariff policy on Indian-cut and polished diamonds entering the U.S. Ongoing discussions with India’s Commerce and Industry Minister are focused on easing trade restrictions and creating a more supportive framework for an industry struggling with rising costs and waning global demand.
As the diamond industry navigates this “perfect storm” of challenges, stakeholders emphasize the need for swift policy interventions and strategic adaptations to sustain the livelihoods dependent on this glittering trade.
