The U.S. diamond market is facing fresh turbulence after President Trump raised tariffs on Indian imports to 50 percent, doubling the previous 25 percent rate. The move, aimed at punishing India for its continued purchase of Russian oil, threatens to make diamonds significantly more expensive for American buyers.
India has long been the world’s leader in cutting and polishing diamonds, with the United States as one of its largest customers. Until earlier this year, polished diamonds could enter the U.S. duty free, giving importers and retailers affordable access to India’s supply chain. But with tariffs first introduced in April and now raised even further, importers are already feeling the sting.
Trade figures highlight the dramatic shift. In January 2025, the U.S. imported $579 million worth of diamonds from India. By June, that number had collapsed to $58 million a staggering 90 percent decline. At the same time, duties that were virtually nonexistent at the start of the year surged to millions of dollars, adding costs that will likely filter down to consumers.
Industry insiders say the sudden jump in tariffs has caught many businesses off guard. I have colleagues who had stuff coming in and missed the boat literally the boat by a day, and got these huge tariffs because they were put into effect, said Steven Grauer of New York’s Diamond District Partnership. For jewelers and wholesalers, timing has become critical, as missing even a short window could mean absorbing massive new costs.
The diamond trade is now bracing for ripple effects. With India’s exports slowed and costs rising, American jewelers may face shortages, while customers could see higher price tags on engagement rings and luxury jewelry. The disruption underscores how global politics and energy disputes can unexpectedly reach consumers in surprising ways says New York Times
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