Overview

• The extra 25% duty took effect Wednesday, lifting many tariffs to 50% following an earlier 25% imposed on Aug. 7.
• Crisil projects diamond polisher revenues to fall about 28–30% this fiscal to roughly $12.5 billion, with 50–100 basis points of margin erosion and rising credit pressure.
• After the initial U.S. levies, America’s share of India’s polished natural-diamond exports fell to 24% in the first four months, while July exports rose 18% as production ramped for festivals.
• Gujarat industry leaders describe the shock as temporary and point to strong U.S. consumer preference for diamonds, though some jewellers expect a near-term sales dip as prices rise.
• Crisil says mitigation will hinge on boosting domestic sales, targeting other markets and adding overseas polishing capacity, since simple rerouting through low-tariff hubs would still face the higher duty.