Almost a month into US president Donald Trump’s 50% reciprocal tariff imposition on India, the country’s diamond industry is struggling to keep afloat.

A report by CareEdge Ratings stated that if the 50% tariff is fully passed on, it will likely impact the cut and polished diamonds (CPD) segment, and it estimated a 17-20% decline in CPD exports to the US in FY26.

A statement by Akhil Goyal, director at CareEdge Ratings, said, “Tariffs increasing to 50% by a key diamond-consuming nation is expected to exacerbate the demand sluggishness in the CPD industry . The industry continues to face competition from LGDs, and there is limited offsetting potential from alternative markets, such as India and China.”

The US accounts for over 40% of global polished diamond demand, and in FY25, i

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