US Tariffs dampen India’s diamond exports while jewellery sales boom
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New Delhi: Following US tariffs on India, the sale of loose diamonds has nose-dived in the US despite increase in jewllery sales in the country, The Deccan Chronicle reported.
It is reported citing market analytics firm Tenoris LLC that the sale of natural loose diamonds marked a decline with revenues falling by 0.5% year-on-year in October.
The trend comes as finished jewellery sales by US specialty retailers grew 11.6% year-on-year in October and revenue from finished jewellery too rose by 14%, according to the report.
Also, a positive trend was reported in diamond-set jewellery with revenue ratcheting up 9 per cent.
Amid this, the sale of natural loose diamonds came down with revenues falling by 0.5% year-on-year in October.
Where costs of finished jewellery rose 17 per cent, costs for diamond jewellery climbed by over 25 per cent owing to tariffs and rising gold prices.
It is reported that consumer prices in the US may increase further despite 50% tariff on imported Indian-origin jewellery is being partly absorbed by the supply chain in the US.
According to Vipul Shah, former chairman of the Gems and Jewellery Export Promotion Council, the fall in the sale of loose diamond is taking its toll on Indian exporters.
‘The exports in October have been quite slow and could be down by 30% during this festive season in the US,’ he reportedly said.
Pointing to the gravity of the situation, it is reported that India’s gross exports of cut and polished diamonds between April and September 2025 fell by 9.57% compared to the same period last year.