Gujarat: Impact of Trump's tariff war: Surat's Diamond Hub - 1.25 lakh jobs in danger, what experts say?
US President Donald Trump's tariff policy has dealt a severe blow to Gujarat's diamond industry. Nearly 1 lakh people engaged in diamond cutting and polishing work in Surat and areas like Bhavnagar, Amreli, Junagadh in Saurashtra have lost their jobs.
The industry says that the crisis that started in April worsened when Trump increased the tariff on diamonds first by 10%, then by 25% and now by 50%. Production decreased due to postponement or cancellation of orders from the US markets, making it impossible to retain workers.
3-4 lakh people are employed in this industry
Orders from China have also declined, which has deepened the crisis. Nearly 3-4 lakh people are employed in this industry and one-fourth of them are facing employment crisis.
Thousands of employees earning up to Rs 20,000 have will be forced to leave their jobs. The union says that if the situation does not improve soon, this crisis can become even more frightening. Big companies are currently silent, while some are hopeful that a trade agreement will be reached between the US and India soon.
US tariffs have broken the back of the industry
The rapid increase in tariffs has directly affected diamond exports. All small and big businessmen have been affected due to the halt in orders from the US, which is the biggest buyer of diamonds from India.
Demand from China also declined
Along with the US market, there has been a huge decrease in the demand for diamonds from China as well. The international economic slowdown and expensive tariffs have forced customers to back off.
Uncertainty about the future
Industry experts believe that if the situation does not improve soon, more jobs may be lost in the next few months. At present, companies are focusing on reducing costs and production.