Fresh tariff measures introduced by the United States in early 2026 have created uncertainty over the expected duty-free access for Indian natural diamonds, raising concerns across India’s export-driven diamond manufacturing sector.

The development follows recent US trade actions imposing new baseline import tariffs across multiple product categories, prompting questions over whether previously negotiated exemptions for natural diamonds and coloured gemstones from India will remain in effect. The exemption had been viewed as a significant outcome of ongoing trade discussions between India and the United States, with the potential to strengthen India’s position as the dominant global cutting and polishing hub.

India is the world’s largest processor of diamonds, accounting for approximately 90% of global diamond cutting and polishing by volume. The United States remains the single largest export destination for Indian cut and polished diamonds, representing a substantial share of the country’s annual gems and jewellery exports.

Industry stakeholders had anticipated that duty-free access would improve pricing competitiveness for Indian exporters, particularly against rival diamond centres such as Antwerp, Israel, and emerging cutting hubs. The possibility of tariffs being applied, even temporarily, could impact export margins, pricing strategies, and supply chain planning.

Exporters have responded to the uncertainty by accelerating shipments to the United States, aiming to ensure goods enter the market before any tariff changes are fully clarified or enforced. Trade participants are closely monitoring official notifications from US authorities to determine the precise scope and timing of any duty implementation or exemptions.

Industry bodies, including India’s leading gem and jewellery export organizations, are in communication with government authorities to seek clarity on the applicability of tariffs to natural diamonds. The situation remains fluid, with stakeholders awaiting formal confirmation on whether the previously discussed duty-free framework will be fully implemented or delayed.

The uncertainty comes at a time when India’s diamond sector is navigating broader global challenges, including cautious consumer demand, inventory adjustments, and evolving supply dynamics. Duty-free access to the US market had been expected to support export recovery and improve trade flows during 2026.

Any change in tariff treatment could influence sourcing decisions by US jewellery retailers and wholesalers, as well as manufacturing and export planning within India’s diamond processing centres, particularly Surat and Mumbai.

Further clarity from US trade authorities and bilateral negotiations is expected to determine the long-term tariff framework governing Indian diamond exports to the United States.