In the heart of India's diamond hub, in the western city of Surat, orders have been paused, gem-polishing machines silenced and fears of more damage and job losses are high.

That's because as of Wednesday, the export tariffs on Indian goods heading to the United States sit at 50 per cent.

"The entire industry is in trauma," Kirit Bhansali, chairman of India's Gem and Jewelry Export Promotion Council, told CBC News.

The tariffs, one of U.S. President Donald Trump's most punitive, are levelled at a country with strong ties to the United States. The new tariff rate includes an additional 25 per cent duty on Indian exports to America, which Trump called "a penalty" for India buying Russian oil at a discount.

"Even the [initial] 25 per cent was very difficult to digest," Bhansali said, beca

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