Union Says One Lakh Diamond Workers Have Lost Their Jobs in Saurashtra Post US Tariff
New Delhi: Close to one lakh workers engaged in diamond cutting and polishing across the Saurashtra region have lost their jobs since April, when the 10% base US tariff was put in place, Gujarat's Diamond Workers Union (DWU) vice-president Bhavesh Tank has said.
According to the Economic Times, Tank said that the job losses had become even more pronounced in the last 10 days, when the 25% tariff rate had been imposed and the threat of a 50% rate is looming. Small units – located in Bhavnagar, Amreli and Junagadh – were the worst affected.
Several reports have said that diamond orders from the US have been put on pause or cancelled since the Donald Trump administration announced the extremely high tariff rates on Indian goods. As The Indian Express reported, India accounted for 68% in volume and 42% in value ($5.79 billion) of the US’s total diamond imports in 2024, as per data from the Gems & Jewellery Export Promotion Council (GJEPC).
GEJPC is already noting the fall in exports. In its report for the first quarter of FY 2025-26 (April-June), it noted: "The overall gross exports of Cut & Polished diamonds at US$ 2837.29 million (Rs. 24270.19 crores) is showing a decline of 22.72% (-20.74% Rs. term) as compared to US$ 3671.33 million (Rs. 30623.29 crores) for the same period of previous year."
A more than 20% drop in total exports is bound to affect the industry as a whole, and DWU has brought to light how cutting and polishing work is drying up. These are workers who earn Rs 15,000-20,000 per month, according to the union.
While some of these workers may be absorbed into the lab-grown diamond industry, overall their futures remain uncertain.
"The US is our single largest market, accounting for over $10 billion in exports — nearly 30% of our industry's total global trade. A blanket tariff of this magnitude is severely devastating for the sector," said Kirit Bhansali, GEJPC chairman, told DW.
"For cut and polished diamonds, half of India's exports are US-bound. With the revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain — from small workers to large manufacturers," Bhansali continued.
Most Indian goods are currently facing a 25% tariff when exported to the US. Trump has announced an additional 25% penalty on this which is supposed to be enforced on August 27, taking the total tariff to 50%. The diamond industry is one the several labour-intensive industries that will likely face the brunt of this decision.
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