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Indian workers fear economic downturn under Trump's tariffs

52 1
13.08.2025

After US President Donald Trump ordered additional tariffs on Indian exports last week, anxiety is spreading among millions of workers, especially those in the jewelry and textile industries.

Jagdish Prajapati, 49, is a diamond worker in Surat, one of the world's largest diamond polishing hubs in India's western Gujarat state.

"We have already been grappling with an economic slowdown over the past few years, with problems stemming from the Russia-Ukraine war. The burden of steep US tariffs, especially on Indian diamond, gem, and jewellery exports, has created more fear," Prajapati, who has been polishing diamonds for over 20 years, told DW.

"Many workshops are already cutting back hours and halting new hiring. If the tariffs come, it will leave families struggling to make ends meet."

According to the Diamond Workers Union Gujarat, there are about 800,000 to 1 million diamond workers in Gujarat, employed in roughly 6,000 diamond polishing units.

"The US is our single largest market, accounting for over $10 billion in exports — nearly 30% of our industry's total global trade. A blanket tariff of this magnitude is severely devastating for the sector," said Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council.

"For cut and polished diamonds, half of India's exports are US-bound. With the revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain — from small workers to large manufacturers," added........

© Deutsche Welle