Loose Diamond Sales Decline In The US, Hurting Indian Exports

Chennai: As higher tariffs on Indian exports pushed prices up, the sales of loose natural diamonds in the US market in October witnessed a decline despite the jewellery sales recording a double-digit growth. Indian cut and polished exporters are anticipating a 30 per cent decline in shipments during the Xmas season in the US this time.

Revenues of loose natural diamonds declined 0.5 per cent year-on-year in October, with unit sales falling by more than 10 per cent while the finished jewellery sales went up by 11.6 per cent, finds a report by market-analytics firm Tenoris LLC, led by industry analyst Edahn Golan.

According to the report, cost pressures are mounting as finished-jewellery costs rose 17 per cent in October, while costs for diamond jewellery increased by over 25 per cent year-on-year, partly due to tariffs and rising gold prices. The 50 per cent tariff on Indian-origin jewellery imported into the US is being absorbed partially by the supply chain for now, but Tenoris warns consumer prices may rise further.

With demand for finished pieces robust and holiday shopping underway, the outlook remains positive, yet the divergence between finished jewellery and loose diamonds signals shifting consumer preferences and pressures in the supply chain.

“The decline in the sales of loose diamonds is not good news for Indian exporters. The exports in October have been quite slow and could be down by 30 per cent during this festive season in the US,” said Vipul Shah, former chairman, Gems and Jewellery Export Promotion Council.

The overall gross exports of cut and polished diamonds from India was down by 9.57 per cent both in value and volume terms between April and September 2025 as compared to the same period of previous year.

According to Shah, for finished jewellery, the casting was done in the US with the polished diamonds imported before the tariffs came into effect. This helped US specialty jewellery retailers report a strong October, with finished jewellery sales growing by 11.6 per cent year-on-year.

Revenue from finished jewellery rose by 14 per cent, bolstered by strong demand for fashion necklaces with almost 92 per cent containing natural diamonds, and finished engagement rings.

Revenue in the fashion necklace category also jumped 34.5 per cent while average spend per item surged by 39 per cent, even as unit sales declined.

Diamond-set jewellery also performed well with revenues rising 9 per cent and average spend per item increased by more than 15 per cent year-on-year.

However, going ahead the sales of finished jewellery too will get affected as the diamonds with higher tariffs are used for jewellery.