India faces "black day" as US slaps 25% tariff on diamond imports

The global diamond industry is bracing for what has been described as a “black day” after the United States imposed a 25% tariff on diamond imports from India — a move that could severely damage the country’s vital gemstone export sector.

According to the diamond trade publication Rapaport, the new tariffs threaten to cut India off from its largest export market, Caliber.Az reports.

The development follows Washington’s decision to penalise India over its continued purchases of Russian oil and petroleum products.

In a presidential decree, US President Donald Trump stated that similar measures could be applied to other countries as well. The latest hike effectively raises the total tariff burden on Indian imports to 50%.

India’s Ministry of External Affairs has condemned the move, calling it “unjust, unreasonable, and unfounded,” and pledged to take all necessary steps to protect the country's economic interests.

More than 90% of the world’s diamond cutting and polishing is done in India, and the sudden imposition of tariffs has sent shockwaves through the industry. Trade in polished diamonds outside the US has come to a near standstill, with dealers warning of a potentially devastating impact.

Some exporters are reportedly rushing to ship goods to the US before the tariffs officially come into effect.

“This is a black day for the gems and jewellery sector,” said Kirit Bhansali, chairman of India’s Gem and Jewellery Export Promotion Council, speaking to Rapaport.

He added that while a tariff rate of 10% to 15% could have been absorbed by marginally adjusting profit margins across the supply chain, a 25% levy is likely to cause serious disruption to the global diamond trade.

By Aghakazim Guliyev