How Will The 27% U.S. Tariff Affect Indian Consumers and Retailers of Lab Grown Diamonds?

{"AutoID":182,"DateCreation":"\/Date(1748504854533)\/","DateModified":"\/Date(1748504896037)\/","CreatedBy":null,"ModifiedBy":"Rahul Bohra ","RecordStatus":"A","Title":"How Will The 27% U.S. Tariff Affect Indian Consumers and Retailers of Lab Grown Diamonds?","SubTitle":null,"Description":"\u003cp dir=\"ltr\"\u003eRecently, the USA has announced the implementation of import tariffs ranging from 15% to 27% on products from other countries. The tariff rate on Indian imports is \u003ca href=\"https://www.livemint.com/economy/trump-reciprocal-tariff-us-india-gems-and-jewellery-exports-goldiam-international-vaibhav-global-11743653585009.html\"\u003e27%\u003c/a\u003e. India, the second-largest lab grown diamond manufacturer will see impact on the price, market preference, and supply chain of lab made diamonds, due to this tariff.\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eIn this blog, we talk about how this 27% tariff might affect Indian consumers and retailers of lab created diamonds.\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003ch2 dir=\"ltr\"\u003e\u003cstrong\u003eUnderstanding the 27% tariff\u0026rsquo;s impact\u003c/strong\u003e\u003c/h2\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eThe 27% tariff applies to both rough and polished diamonds, mined and lab grown diamonds that are imported from India into the US. This new tariff rate will impact not only the mined diamond industry, but also the rapidly growing segment of Indian-manufactured synthetic diamonds. Indian lab grown diamonds have gained significant U.S. market share in recent years.\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eIndia has a vibrant diamond industry, specifically, diamond cutting and polishing. This new tariff rate will impact the large number of US consumers of Indian diamonds for sure. It will also impact lab grown diamond consumers and retailers in India.\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003ch2 dir=\"ltr\"\u003e\u003cstrong\u003eImmediate price impact for consumers\u003c/strong\u003e\u003c/h2\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eOne of the most notable effects of this tariff will be on \u003ca href=\"https://www.growndiamondcorp.com/blog/how-to-determine-the-price-of-your-diamond/\"\u003elab grown diamond prices\u003c/a\u003e. Industry experts have said that the prices could rise by 15-20%. This means, for an engagement ring made of lab created diamonds, if the current price is $4000, the future price could be $5000 or more.\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eMoreover, the prices will increase based on the various lab diamond categories. For instance, small diamonds that are under 0.30 carats, will see a higher price increase compared to medium and large diamonds.\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eConsumers are also accelerating their purchases to \u003ca href=\"https://www.growndiamondcorp.com/\"\u003ebuy lab created diamonds\u003c/a\u003e at lower prices before the tariffs are added to the price tags.\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eOther than these immediate changes, the tariff will also have long-term effects for consumers. For instance, as the manufacturing or processing shifts to other locations, consumers might see changes in the quality of lab grown diamonds.\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eAlso, as the supply chain of lab diamonds become more complex, consumers might face challenges with the authenticity and traceability of the diamonds.\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003ch2 dir=\"ltr\"\u003e\u003cstrong\u003eImmediate impact for retailers\u003c/strong\u003e\u003c/h2\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eRetailers of lab grown diamonds and lab diamond jewelry will face many consequences, too. For instance, retailers will have to make a decision about whether they want to implement the new price on the existing inventory or offer them at the older, pre-tariff prices.\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eAnother factor that retailers have to consider is the supply chain or how they source their lab grown diamonds. Many retailers are exploring purchasing diamonds from lab grown diamond manufacturers based in other countries that are closer and involve lesser supply chain costs.\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eThe tariff has also led to an increased interest in alternative diamonds, such as moissanite and other diamond simulants, vintage and pre-owned diamonds, colored lab grown diamonds as center stones, and smaller and more simple designs.\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eRetailers of lab created diamonds will have to engage in educating their customers about the impact of the tariff to build trust. They might also come up with innovative financing for lab made diamonds, such as payment plans, etc. Retailers might also have to innovate with the jewelry designs to maximize the visual impact of the diamond jewelry.\u003c/p\u003e\r\n\r\n\u003ch3 dir=\"ltr\"\u003e\u003cstrong\u003eSumming up\u003c/strong\u003e\u003c/h3\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eThe new 27% tariff rate on mined diamonds and lab grown diamonds is definitely going to impact the overall diamond industry, the consumers and retailers. While consumers will face higher prices and retailers will have to navigate this complex challenge in the short-term, in the long-term, the lab grown diamond industry will align to consumer and market preferences.\u003c/p\u003e\r\n\r\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\r\n\r\n\u003cp dir=\"ltr\"\u003eAs the lab grown diamond industry has always innovated and stayed ahead of the market trends and disruptions, this time too, lab grown diamond manufacturers and retailers will find an innovative solution that is favorable to them and consumers.\u003c/p\u003e\r\n\r\n\u003cp\u003e\u003cbr /\u003e\r\nIf you\u0026rsquo;re looking to explore the best lab grown diamonds at affordable rates, head to \u003ca href=\"https://www.growndiamondcorp.com/\"\u003eGrown Diamond Corporation\u003c/a\u003e. Grown Diamond Corporation is one of the largest manufacturers and suppliers of lab grown diamonds to the USA. The brand, based in India and USA, has been providing the best quality and variety of lab made diamonds. To see the diamond in person in the USA, head to \u003ca href=\"https://www.growndiamondcorp.com/jck-las-vegas-show-2025/\"\u003eJCK 2025\u003c/a\u003e, from June 6 to 9, 2025.\u003c/p\u003e\r\n\r\n\u003ch4\u003e\u003cstrong\u003ePeople also read\u003c/strong\u003e\u003c/h4\u003e\r\n\r\n\u003cul\u003e\r\n\t\u003cli dir=\"ltr\"\u003e\r\n\t\u003cp dir=\"ltr\"\u003e\u003cstrong\u003e\u003ca href=\"https://www.growndiamondcorp.com/blog/are-lab-grown-diamonds-a-good-investment/\"\u003eAre Lab-Grown Diamonds a Good Investment?\u003c/a\u003e\u003c/strong\u003e\u003c/p\u003e\r\n\t\u003c/li\u003e\r\n\t\u003cli dir=\"ltr\"\u003e\r\n\t\u003cp dir=\"ltr\"\u003e\u003cstrong\u003e\u003ca href=\"https://www.growndiamondcorp.com/blog/facts-about-lab-grown-diamonds/\"\u003eFacts About Lab Grown Diamonds\u003c/a\u003e\u003c/strong\u003e\u003c/p\u003e\r\n\t\u003c/li\u003e\r\n\t\u003cli dir=\"ltr\"\u003e\r\n\t\u003cp dir=\"ltr\"\u003e\u003cstrong\u003e\u003ca href=\"https://www.growndiamondcorp.com/blog/why-are-lab-created-diamonds-called-eco-friendly-diamonds/\"\u003eWhy Are Lab-Created Diamonds Called Eco-Friendly Diamonds?\u003c/a\u003e\u003c/strong\u003e\u003c/p\u003e\r\n\t\u003c/li\u003e\r\n\t\u003cli dir=\"ltr\"\u003e\r\n\t\u003cp dir=\"ltr\"\u003e\u003cstrong\u003e\u003ca href=\"https://www.growndiamondcorp.com/blog/all-you-need-to-know-about-hrd-diamond-certification-before-you-buy-a-diamond/\"\u003eAll You Need To Know About HRD Diamond Certification Before You Buy A Diamond\u003c/a\u003e\u003c/strong\u003e\u003c/p\u003e\r\n\t\u003c/li\u003e\r\n\t\u003cli dir=\"ltr\"\u003e\r\n\t\u003cp dir=\"ltr\"\u003e\u003cstrong\u003e\u003ca href=\"https://www.growndiamondcorp.com/blog/why-are-lab-created-diamonds-called-blood-free-diamonds/\"\u003eWhy are Lab-created Diamonds called blood-free diamonds?\u003c/a\u003e\u003c/strong\u003e\u003c/p\u003e\r\n\t\u003c/li\u003e\r\n\u003c/ul\u003e\r\n","FromDate":null,"ToDate":null,"Image_Url":"how-will-the-27-us-tariff-affect-indian-consumers-and-retailers-of-lab-grown-diamonds.png","Image_Alt":null,"KeyWords":null,"MetaDescription":null,"MetaTitle":"How Will The 27% U.S. Tariff Affect Indian Consumers and Retailers of Lab Grown Diamonds?","CanonicalLink":null,"MetaContent":null,"SeqNo":null,"Slug":"how-will-the-27-us-tariff-affect-indian-consumers-and-retailers-of-lab-grown-diamonds","GetTitle":"how-will-the-27-us-tariff-affect-indian-consumers-and-retailers-of-lab-grown-diamonds","GetImageUrl":"https://docs.growndiamondcorp.com/blog/how-will-the-27-us-tariff-affect-indian-consumers-and-retailers-of-lab-grown-diamonds.png"}