Surat's Diamond Dreams Dim Amid U.S. Tariff Tensions

The Surat Diamond Bourse, renowned as the world's largest office complex, currently stands mostly vacant. Despite its grand opening and intended status as a symbol of India's growing trade ambitions, stagnating diamond exports due to weakened Chinese demand and increased U.S. tariffs have muted business activities.

The diamond industry, a vital sector of India, is grappling with a two-decade low in export levels. Recent tariff rises under U.S. President Donald Trump threaten access to India's largest market, challenging the $28.5 billion shipments of gemstones and jewelry. Traders face critical decisions with the imminent tariff hike.

In response, some major exporters plan to shift operations to countries with lower tariffs while others, like Dharmanandan Diamonds, anticipate significant revenue hits. The broader industry, including thousands of smaller businesses and workers, is cutting back working hours and staffing in light of reduced demand and potential job losses.

(With inputs from agencies.)