From glitter to gloom: Gujarats diamond and textile hub hit by US tariff shock
AHMEDABAD: Gujarat's Surat city, glittering with diamonds and textiles, is staring at a storm. With US President Donald Trumps 50 per cent tariff on Indian goods kicking in, the city's lifeline industries, diamonds and textiles, face unprecedented disruption. Exports worth billions have stalled, artisans fear mass unemployment, and desperation is already pushing some former workers into crime. The crisis has snowballed from factories to families, threatening not just trade but the citys social fabric. Surat's sparkle dims as a new tariff wall rises in the US, slashing demand for diamonds and textiles overnight. What was once a steady flow of large orders has dried up, leaving traders anxious and artisans vulnerable. Jayanti Savaliya, regional president of the Gem and Jewellery Export Promotion Council (GJEPC), warned that the new pricing will drive American buyers away. New orders have stopped completely. With our products becoming 50 per cent costlier in the US, customers will simply stay away, he said. His warning cuts deeper for Special Economic Zones (SEZs), which thrive solely on direct exports. Without intervention, thousands of artisans could soon be jobless, pushing the council to demand government support and marketing funds. Centre working on support measures to help exporters deal with 50 % US tariff The textile industry, too, finds itself caught in the same storm. Ashok Jirawala, chairman of the Federation of Weavers Association, admitted the tariff hits not only Surat but also Tirupur - India's garment hub. Prices of garments, curtains, bedsheets and yarn will rise by 50 per cent. Competing in the US market will now be impossible, he said, urging exporters to scout for alternative markets. The blow comes on an already weak pulse. Surats diamond industry has been in recession for months, forcing the Gujarat government earlier to offer fee-support packages for artisans' children. Now, with exports frozen $4.8 billion worth of gems and jewellery to the US, the fallout is massive. Out of 8 to 9 lakh workers in Surat and almost half of Gujarat's 15 lakh diamond artisans, 40 per cent are likely to face job losses. The human cost is surfacing fast. In a shocking twist, a former diamond worker, 50-year-old Bheraram Bishnoi, was caught in Surat's Varachha area selling opium worth Rs 53,400. Police revealed he had turned to crime after losing his diamond business job, a stark example of how economic despair is already breeding social cracks. Even factories are showing cracks. A Katargam-based diamond firm that catered to foreign traders, abruptly laid off 100 workers this week, its decision directly linked to the tariff shock. Workers protested, and after tense negotiations led by the Diamond Worker Union, the company agreed to reinstate them. Bhavesh Tank, the unions vice president, confirmed, All jewelers will resume work from tomorrow, with lost days adjusted.
Coimbatore's Textile, MSME Sector Seek Relief After US Tariff Hike, Cite Covid
The MSME and textile industry in Tamil Nadu's Tirupur and Coimbatore could face a wipeout, with the 50 per cent tariff imposed by Donald Trump kicking in.
Tirupur's knitted apparel exporters are bracing for a significant drop in orders and profit margins due to the US government's new 25% tariffs, effective Wednesday. Anticipating the impact, US buyers are pausing fresh orders, forcing exporters to renegotiate existing deals. With already thin margins, absorbing the additional cost is proving difficult.
Export units at Tirupur, Noida, Surat halt production amid high U.S. tariffs: FIEO
U.S. tariffs will severely disrupt the flow of Indian goods to its largest export market, Federation of Indian Export Organisations
Studied In Government School, Played On Streets: Friend Of BJP's Vice President Pick
Tirupur, Tamil Nadu's bustling textile town, is celebrating one of its own. With the NDA naming Maharashtra Governor CP Radhakrishnan as its Vice Presidential candidate, his alma mater and old neighbourhoods were abuzz with pride and emotion.
Indian exporters rush shipments to beat looming 50% US tariff hike
Indian exporters are accelerating shipments to the US before the August 27 deadline. A 25% reciprocal tariff is set to double. Companies like Farida Group and Richa Global Exports are expediting orders. Smaller exporters face significant challenges. Industry leaders are worried about the impact on apparel exports. Tirupur Exporters Association seeks government intervention.
