For centuries, diamonds have symbolized invincibility. Today, India’s diamond industry embodies that same resilience yet faces its greatest modern challenge. This isn’t just about sparkling stones; it’s about millions of livelihoods, geopolitical trade wars, and a $40 billion global industry hanging in the balance.

Why India Is the Diamond Universe:

India’s dominance isn’t accidental – it’s engineered through generations of expertise. Consider these staggering facts verified by the World Trade Organization (WTO) and Gem & Jewellery Export Promotion Council (GJEPC):

90% Global Market Share: 9 out of 10 diamonds worldwide are cut/polished in India

$6 Billion in annual diamond exports + $3 Billion in jewelry exports

7.5% of India’s GDP (equivalent to entire economies of Mongolia or Barbados)

1.5 Million Workers employed across 15,000+ workshops in Surat and Mumbai

51% Export Dependency on the US market

(Source: GJEPC Annual Report)

The US-India Diamond Symbiosis: A $3 Billion Lifeline

The US doesn’t just buy Indian diamonds – its luxury market depends on them:

32% of all diamond jewelry sold in US retail contains Indian-processed stones.

Tiffany & Co., Signet Jewelers (Kay/Zales), and Blue Nile source 60-80% of stones via India

74% engagement rings in America feature diamonds cut in Surat.

This interdependence explains why new tariffs aren’t just taxes they’re economic earthquakes.

🚨 The Tariff Earthquake: From 6% to 26% Overnight

Until 2024, US import duties on diamonds and jewelry hovered at a manageable 6-7%. But under new trade policies, tariffs have skyrocketed to 26-27%—a 400% increase. The structure is brutal:

Base Tariff: 10% (applies to all countries)

Country-Specific Add-On: 16-17% (targeting India)

The immediate impact? Catastrophic:

📉 17% monthly drop in Indian diamond exports to the US

📉 72% year-over-year collapse in shipments

These tariffs are part of a broader US strategy to boost domestic manufacturing. But diamonds aren't iPhones, they’re geologic rarities mined in Botswana, Canada, or Russia, then cut in India. Taxing them like finished goods ignores supply chain reality.

42,000 jobs lost in Gujarat cutting centers (Q1 2024)

$800 million revenue vaporized in 90 days

Annexure B & The "Raw Material" Revolution -

Buried in 2,300-page tariff documents lies Annexure B the industry’s potential lifeline. This clause exempts 26 product categories from surcharges if classified as "industrial inputs."

The Game-Changing Argument:

Diamonds ≠ Finished Goods

They’re components for jewelry (like gold bars or sapphires)

0% of consumers buy loose diamonds – they buy rings/necklaces

Global precedents: Canada/Australia tax diamonds at 0-5% as raw materials

The World Diamond Council is leading a coalition including:

GIA (Gemological Institute of America)

Responsible Jewellery Council

Indian Ministry of Commerce

Their mission: Reclassify diamonds under HS Code 7102.31 ("Unworked Industrial Diamonds") instead of 7102.39 ("Other Worked Diamonds").

Potential Impact:

Tariffs slashed from 26% → 5-7%

$4.2 billion/year saved across supply chain

Survival for 600+ SME exporters

(See GJEPC’s White Paper on Diamond Reclassification)

Product Type Base Tariff +Country Surcharge TOTAL

Polished Diamonds 10% 16% 26%

Diamond Jewelry 10% 17% 27%

(Source: U.S. International Trade Commission Ruling 2024-7)

CaratX:

While lobbyists fight, smart jewelers are deploying CaratX’s battlefield technology:

5 Tariff-Busting Weapons:

1. Pre-Certification
2. Bonded Warehouse Network
3. Direct Buyer Access
4. Consolidated Shipping

CaratX isn’t just another B2B portal, it’s a diamond ecosystem built by jewelers for jewelers. Here’s how it solves the tariff crisis:

Real-Time Trade Intel: Tariff updates and analysis (e.g., Annexure B exemptions)

Zero Middlemen: Connect directly with 18+ verified US buyers in our global marketplace

Cost Slasher: Reduce storage, returns, and compliance costs by 40%

Trust: Every stone certified pre-shipment (see our verification process)

Case Study: A Surat-based exporter avoided $220,000 in tariffs by using CaratX’s US bonded warehouse network and direct buyer access.

Weaving CaratX deep into the content:

Marketplace Access: “Connect directly with buyers in our global marketplace”

Tech Edge: certification via our verification portal”

Cost Savings: “Reduce tariffs using our bonded warehouse network”

Pricing: “Transparent fees on our pricing page”

Join the Diamond Revolution -

The tariff storm won’t end tomorrow but your business can adapt today. 400+ jewelers already use CaratX to: Build direct buyer relationships

Register FREE as a Seller

Explore Our Marketplace

Don’t just survive tariffs, dominate them. CaratX turns trade chaos into your competitive edge.

Conclusion:

While policymakers and trade councils work to redefine codes and reshape regulations, CaratX is empowering jewelers right now. Whether it’s routing diamonds through bonded warehouses, providing real-time tariff updates, or enabling zero-middleman sales to verified U.S. buyers, CaratX turns crisis into opportunity.

Sellers: Don’t wait for policy—adapt now.

Register FREE on CaratX
Explore Our Global Diamond Marketplace
See How We Slash Your Costs

Diamonds may be forever—but only if your business strategy evolves today. Join the 400+ sellers already thriving through CaratX and turn trade chaos into competitive advantage.