Trump's tariffs taunting to Indian diamond industryJune 25, 19
Following the United States' decision - by means of a decree by President Donald Trump - to withdraw benefits under the Generalised System of Preference (GSP), the price of polished diamonds exported by India to the US will increase with seven to eight percent, according to rating agency CRISIL.
Currently, the US accounts for about half of the India's diamond exports to the US, at an estimated value of $24 billion, according to the Gem and Jewellery Export Promotion Council (GJEPC).
According to the online Indian publication The Tribune, the withdrawal of the GSP "adds to the woes of diamond exporters, who are reeling under reduced credit facilities from financial institutions following the frauds carried out by diamond merchants Mehul Choksi and Nirav Modi, according to those in the trade. Sources at the GJEPC say that the American government's decision to remove all distinction between natural and man-made diamonds has also affected the exports of cut and polished diamonds."
Also, according to the GJEPC, as the US continues to raise barriers and tariffs against Indian exports of gems and jewelry, India's competitive position in under siege.
The Tribune wrote that Indian diamond exporters were now "demanding that the Indian government grant them a four percent subsidy under the Merchandise Exports from India Scheme (MEIS) in the forthcoming budget in order to offset the higher tariffs following withdrawal of GSP benefits by the USA."