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China’s Renewed Spark: How Rising Demand Is Reviving Natural Diamond Exports
Economy - June 18, 2025

China’s Renewed Spark: How Rising Demand Is Reviving Natural Diamond Exports

China’s Renewed Spark: How Rising Demand Is Reviving Natural Diamond Exports

After years of decline, new retail strategies and shifting consumer sentiment in China are fueling hopes for a rebound in the global diamond trade.

Introduction: From Gloom to Glimmer
The global diamond industry has weathered a challenging period, marked by pandemic disruptions, shifting consumer preferences, and economic headwinds. Nowhere has this been felt more acutely than in India, the world’s leading exporter of cut and polished diamonds, where exports to China have halved over the past three years. Nevertheless, 2025 appears to be emerging as a pivotal year. A confluence of new retail tactics and changing consumer sentiment in China is breathing new life into the diamond trade, suggesting a long-awaited revival may be underway.

The Downturn: What Went Wrong?
Between 2021 and 2024, India’s diamond exports to China saw a sharp decline, dropping from more than $6.5 billion to merely $3.3 billion. Several factors contributed to this decline:
• Changing Preferences: Chinese consumers increasingly favored gold over diamonds, drawn by gold’s perceived value and security during uncertain times.
• Economic Slowdown: The Chinese economy’s post-pandemic recovery was slower than anticipated, dampening discretionary spending on luxury goods.
• Health Concerns: The emergence of new viruses, such as HMPV, added fresh uncertainty, further curbing consumer confidence and retail activity.
This combination led to a surplus of unsold inventory, falling prices, and a cautious outlook among exporters and traders.

Signs of Recovery: What’s Changing in 2025?
1. Innovative Retail Strategies
The most significant catalyst for renewed demand is the introduction of diamond buyback schemes by major Chinese jewelry retailers, including Chow Tai Fook and Chow Sang Sang. These programs allow customers to return their diamond purchases for a guaranteed value, reducing perceived risk and making diamonds a more attractive investment. The response has been swift: retailers report a surge in inquiries and foot traffic, especially among younger buyers.
2. Shift in Consumer Sentiment
After years of prioritizing gold, Chinese shoppers are showing renewed curiosity about diamonds—particularly smaller stones and accent pieces set in gold jewelry. This trend was evident at recent Hong Kong trade shows, where demand for smaller diamonds stabilized and even began to rise. Industry analysts point out that diamonds are once again capturing attention as symbols of prestige and romance, particularly among urban millennials and Gen Z buyers.
3. Stabilizing Prices and Inventory
The glut of unsold diamonds that plagued the market in recent years is easing. Prices have begun to stabilize, and inventory levels are returning to healthier norms. This has boosted confidence among traders and exporters, who are cautiously optimistic about sustained recovery.

India’s Diamond Industry: Ready for a Comeback
India, which polishes and exports more than 90% of the world’s diamonds, stands to benefit the most from China’s reawakening demand. The Gem and Jewellery Export Promotion Council (GJEPC) reports that while exports remain below their pre-pandemic highs, the pace of decline has slowed, and inquiries from Chinese buyers are on the rise.
Industry leaders expect the real impact to be felt from September 2025 onward, as the buyback schemes gain traction and consumer sentiment continues to improve. The upcoming wedding and festival seasons in China are also expected to drive a fresh wave of purchases.

Challenges Remain: Proceeding With Caution
While the outlook is brighter, several challenges could temper the pace of recovery:
• Global Competition: Other diamond-producing countries are also targeting the Chinese market, intensifying competition.
• Economic Uncertainty: Lingering concerns about China’s economic growth and potential new health crises could still affect consumer confidence.
• Changing Tastes: The long-term trend toward smaller stones and diamond accents may limit the recovery in high-value, large-stone exports.
Nonetheless, the consensus is that the worst is over, and a gradual, sustainable rebound is underway.

The Global Picture: Ripple Effects Beyond China
China’s renewed interest in diamonds is already having ripple effects across the global supply chain. Exporters in Belgium, Israel, and Africa are watching the Chinese market closely, hoping for a broader lift in demand. Meanwhile, the stabilization in prices is encouraging miners and traders worldwide to ramp up production and marketing efforts.

Conclusion: A New Chapter for Diamonds
After a prolonged downturn, the diamond industry is finally seeing reasons for optimism. China’s evolving retail landscape, innovative buyback schemes, and a shift in consumer sentiment are laying the groundwork for a revival in natural diamond exports. While challenges remain, the industry’s resilience and adaptability are on full display. As the world’s second-largest diamond market reignites its passion for these precious stones, exporters—especially in India—are preparing for a brighter, more sparkling future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Axiscades Soars with Indra Sistemas Partnership!

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Foxconn Strengthens India Presence Amid Global Asset Shift
Market News - June 12, 2025

India’s Textile Task Force Sets Sights on Global Expansion

India’s Textile Task Force Sets Sights on Global Expansion

India’s fabrics aren’t just stitched — they’re getting smart.

India has taken a proactive step to strengthen its position in the global textile market by launching a dedicated task force focused on expanding the country’s export capabilities. The newly formed group, meeting for the first time in New Delhi, brought together top officials, industry leaders, and policy experts to chart a strategic path forward. At the heart of this initiative lies the goal to tackle pressing international trade challenges and unlock new growth opportunities for textile businesses across the country.

One of the key themes explored in the session was how Indian textile players could gear up for the EU’s Deforestation-Free Products Regulation (EUDR), a policy shift that demands greater transparency in the sourcing and production of commodities. The task force acknowledged that such global compliance standards may present hurdles for exporters but also offer an opportunity to reposition India as a responsible and reliable supplier in the sustainable textile value chain.

Another topic that featured prominently was how online platforms can act as engines for expanding India’s textile reach. The group underlined the transformative role of e-commerce, not just in increasing overseas sales, but also in creating access for small and medium enterprises that traditionally found it hard to participate in exports. By strengthening logistics and digital infrastructure, the task force aims to integrate rural producers into the global market more efficiently.

By aligning these initiatives with the work of the task force, policymakers hope to formulate a roadmap that addresses both short-term export challenges and long-term competitiveness.

Trade deals were also a crucial part of the conversation. The task force evaluated how upcoming agreements, such as the UK–India Free Trade Agreement, could offer Indian exporters tariff-free access to major markets. Such trade liberalization is expected to drive higher export volumes, particularly in categories like garments and home furnishings, which form the backbone of India’s textile economy.

The move isn’t isolated to the central government alone. Regional organizations are stepping in too. For instance, the Southern Gujarat Chamber of Commerce and Industry recently launched its own task force to bring stakeholders across Surat’s textile sector under one collaborative framework. The goal here is to bridge the gap between policymakers, manufacturers, and global buyers to ensure smoother export operations.

As part of its broader vision, the national textile task force aims to iron out long-standing inefficiencies in customs processes and compliance documentation. It also highlighted the need to ease up Quality Control Orders (QCOs) on basic raw materials like polyester and viscose, which continue to hinder cost competitiveness for many Indian exporters.

Another forward-looking proposal discussed during the session was the creation of a separate ESG (Environmental, Social, and Governance) committee. This unit would be tasked with aligning India’s textile production with global eco-conscious trends. By branding Indian textiles as ethical and eco-friendly, the country could unlock premium pricing and higher demand from environmentally aware markets.

At the heart of the discussion was a shared belief that collaboration, innovation, and policy alignment can significantly strengthen India’s textile export engine. As global fashion brands become increasingly conscious of where and how their products are made, India is strategically positioning itself as a supplier that blends tradition with sustainability and scale.

By confronting compliance issues, leveraging digital transformation, and building synergy with global trade agreements, the country aims to not just catch up with international competitors—but to lead the next chapter of global textile trade.

Summary

India’s newly formed textile export task force is shaping a modern strategy to push Indian textiles deeper into global markets. With a focus on sustainability, digital trade, policy reforms, and trade agreements, the initiative aims to overcome export bottlenecks and position India as a future-ready textile powerhouse.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Inox Wind Energy Ltd Surges as NCLT Approves Merger with Inox Wind Ltd

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Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply
Economy - June 4, 2025

US Steel Tariffs: A Dilemma for Indian Manufacturers

US Steel Tariffs: A Dilemma for Indian Manufacturers

While higher import tariffs may lead to uncertainty, companies such as JSW Steel and Hindalco’s Novelis are finding positive aspects in potential policy adjustments and the benefits of local production.

Summary:
The United States’ decision to double tariffs on steel and aluminium imports has stirred concerns across global markets, yet Indian companies with manufacturing operations in the US—like JSW Steel and Hindalco’s Novelis—are preparing to navigate the changes with cautious optimism. With expectations of limited overall impact due to counterbalancing trade measures and localized production, Indian firms might turn potential headwinds into competitive advantages.

US Doubles Down on Steel Tariffs: A Global Ripple Effect
In a notable protectionist measure, the Biden administration declared that it would increase tariffs on certain steel and aluminum imports by double. This policy aims to protect American industry from alleged unfair competition, especially from Chinese companies rerouting materials through third countries. While this aggressive trade stance may ruffle international relations, it has a more nuanced impact on manufacturing for Indian companies within the United States.
For Indian metals giants like JSW Steel and Hindalco’s Novelis, the development presents a mix of challenges and opportunities. Though global trade uncertainty has increased, their established local manufacturing presence offers insulation from direct tariff penalties and positions them favourably in a more protected domestic environment.

JSW Steel: Tariff Shock or Strategic Advantage?
JSW Steel, one of India’s largest steel producers, has significant operations in the US, including facilities in Texas and Ohio. The company has been working to improve the performance of its American units, which have historically seen profitability challenges due to operational issues and volatile market conditions.
With the new tariffs in place, JSW Steel’s US business may actually stand to gain as domestic producers become more competitive against imports.
“Our American operations have been gradually improving, and with these tariffs, we expect positive contributions moving forward,” a senior JSW official was quoted as saying.
The company has already invested over $1 billion in modernizing its US plants. With increased tariffs likely to raise the cost of imported steel, domestic players like JSW’s US units could benefit from increased demand and improved margins. However, the full extent of the impact will depend on whether JSW sources raw materials or semi-finished products from outside the US, which might still be affected by the tariff hikes.

Novelis (Hindalco): Neutral to Positive Outlook Amid Trade Complexity
Novelis, a subsidiary of Hindalco Industries based in Atlanta, is a prominent global provider of rolled aluminium products and a recycler of aluminium. The company has a robust US manufacturing footprint, which strategically positions it to weather import-related trade turbulence.
Commenting on the tariff development, a Novelis spokesperson indicated the company expects a “neutral to positive” outcome, subject to the outcomes of ongoing trade negotiations and potential exemptions.
Novelis’ existing domestic production capacity means the company is less reliant on imported aluminium, which cushions it from the immediate effects of tariff increases. Additionally, given its involvement in high-growth segments like automotive and beverage manufacturing, demand for its products is expected to remain strong.
Still, executives are keeping a close eye on trade policy dynamics, particularly rules of origin and any potential retaliatory measures from affected countries, which could alter cost structures.

Mixed Signals from Analysts: Limited Immediate Impact, Long-Term Uncertainty
Although the tariffs are attracting significant attention, many analysts believe that their overall effect on Indian companies operating in the US may be minimal. This is due to several reasons:
1. Local Manufacturing Mitigates Impact: Indian companies with manufacturing facilities in the US can bypass direct tariffs.
2. Existing Safeguard Duties: Current safeguard measures under Section 232 have already set up barriers for imports, and the recent actions are seen by some as largely symbolic.
3. Potential for Exemptions: Ongoing trade negotiations might provide opportunities for exclusions or quotas that could safeguard allied nations, including India.
4. Global Capacity Constraints: With the supply of aluminium and steel already limited worldwide, changes in tariffs may lead to adjustments in supply chains rather than a decrease in demand.
However, uncertainty continues to be a significant issue. If global supply chains suffer from retaliatory measures or if trade conflicts escalate, even companies that are locally established could experience rising costs or fluctuations in demand.

Global Competitiveness: Indian Companies Poised to Pivot
From a strategic standpoint, these tariffs could prompt Indian conglomerates to double down on localizing production for global markets. The recent move may also serve as a wake-up call for companies overly dependent on exports to build capacity in key consumer markets like the US.
Additionally, firms with sustainability-aligned growth models—such as Novelis with its recycling initiatives—could capitalize on US government preferences for cleaner, domestically produced metals.

Future Outlook: Navigating Policy with Strategy
Looking forward, the full impact of the new US tariffs on Indian companies will hinge on several variables:
Bilateral Trade Talks: Will India negotiate exclusions or special treatment?
Input Cost Trends: Will tariffs increase raw material costs for Indian companies operating abroad?
Competitor Behavior: How will Chinese and European rivals adapt or respond?
US Infrastructure Push: Will the US government’s focus on domestic infrastructure projects provide sustained demand?
For now, companies like JSW and Novelis are maintaining a cautious but optimistic stance. Their investment in US-based capacity may now offer them a protective moat, making them beneficiaries rather than victims of rising trade walls.

Conclusion:
The increase in steel and aluminum tariffs by the US creates a complex situation for Indian companies operating in America. While global uncertainties remain, firms with established US production, like JSW Steel and Novelis, appear well-positioned to weather the storm—and potentially even profit from it. By leveraging local presence and adapting supply chains, Indian companies may convert trade challenges into strategic gains in the long run.

 

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Vedanta Floats ₹4,100 Crore Bond Issue to Boost Liquidity**

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Gautam Adani’s Freight Forwarding Foray: Challenging Global Logistics Giants
Market News - May 13, 2025

Gautam Adani’s Freight Forwarding Foray: Challenging Global Logistics Giants

Gautam Adani’s Freight Forwarding Foray: Challenging Global Logistics Giants

 

Adani Ports’ bold entry into freight forwarding aims to disrupt a market dominated by multinationals, leveraging India’s largest port network and integrated logistics infrastructure.

Introduction

The Indian logistics landscape is witnessing a seismic shift as Gautam Adani, one of the country’s most influential business leaders, sets his sights on the global freight forwarding market. By expanding Adani Ports and Special Economic Zone Ltd (APSEZ) into this domain, Adani is taking on multinational giants and aiming to reshape how goods move across borders for Indian businesses.

The Freight Forwarding Market: A Global Battleground

Freight forwarding is a critical intermediary service in international trade, orchestrating the movement of goods from origin to destination, including transportation, documentation, and customs clearance. In India, this market has long been dominated by foreign multinationals such as DHL, DB Schenker, Panalpina, Nippon Express, and Yusen Logistics, collectively controlling about 70% of the sector.
Among Indian firms, Allcargo Logistics has been a leading player, but the entry of APSEZ brings a new scale and ambition to the table.

Adani’s Integrated Logistics Advantage

APSEZ’s freight forwarding venture is not a standalone play. The company already commands 45.5% of India’s container handling market at ports and operates air cargo terminals at key airports. Its logistics vertical has posted a remarkable 39% revenue growth in FY25, underlining its aggressive expansion.
Key assets and capabilities include:
• 132 railway rakes (68 containers, 54 GPWIS, 7 Agri, 3 AFTO)
• 12 multi-modal logistics parks
• 3.1 million sq ft of warehousing
• 1.2 million tonnes of agri silos, expanding to 4 million tonnes
These assets enable APSEZ to offer end-to-end integrated transport solutions-spanning ports, rail, road, warehousing, and now, freight forwarding.

Strategic Moves: Trucking and International Freight Network

In FY25, APSEZ launched two new initiatives:
• Trucking Management Solution (TMS):
A marketplace and fulfilment platform to streamline the supply chain for customers.
• International Freight Network (IFN):
An integrated digital platform connecting carriers with end users, enhancing transparency and efficiency.
These innovations are designed to attract more cargo to APSEZ’s network and strengthen its position as a transport utility, not just a port operator.

Leadership and Vision

The freight forwarding business is headed by Akshyat Bhatia, Vice President–Logistics, who joined APSEZ after over 14 years at A.P. Moller-Maersk, bringing deep industry expertise. CEO Ashwani Gupta emphasizes that APSEZ is now a “full end-to-end integrated transport utility company,” aiming to capture the entire supply chain and offer competitive ocean freight rates to customers.

Disrupting the Status Quo

APSEZ’s strategy mirrors global trends, where leading container shipping lines and terminal operators like DP World have expanded into landside logistics to provide end-to-end solutions. By leveraging its vast container market share, APSEZ can negotiate better rates with shipping lines and offer more competitive pricing to Indian exporters and importers.
The company aims to attract customers in India’s hinterland-currently served by third-party freight forwarders-by offering integrated services and the purchasing power of the Adani Group.

The Bigger Picture: Air Cargo and International Expansion

Adani’s logistics ambitions extend beyond ocean freight. The group is exploring passenger-to-freighter (P2F) aircraft conversions to tap into India’s growing air cargo market, which is currently underserved by domestic operators. This is in line with APSEZ’s larger objective of establishing itself as a leading force in all forms of cargo transportation.
Internationally, Adani Ports is also expanding its footprint, recently acquiring the North Queensland Export Terminal in Australia to boost its annual capacity and global reach.

Conclusion

Gautam Adani’s move into freight forwarding signals a pivotal shift in India’s logistics sector.
With its vast scale, integrated infrastructure, and focus on digital transformation, APSEZ is positioning itself to compete with global leaders and provide Indian businesses with a compelling alternative. As the company broadens its presence across sea, land, and air transport, it has the potential to reshape the logistics industry both in India and internationally.

 

 

 

 

 

 

 

 

 

 

 

 

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BOE Lowers Interest Rates to 4.25% as U.S. Tariffs Weigh on Economy
Economy - May 10, 2025

BOE Lowers Interest Rates to 4.25% as U.S. Tariffs Weigh on Economy

BOE Lowers Interest Rates to 4.25% as U.S. Tariffs Weigh on Economy

 

In response to the economic fallout from U.S. tariffs and global uncertainties, the Bank of England reduces rates to boost the UK economy.

Introduction

In a surprising move, the Bank of England (BoE) has lowered its key interest rate to 4.25%, signaling its readiness to adjust monetary policy in response to growing economic pressures. This decision, made in May 2025, comes amid rising concerns about the economic impact of U.S. tariffs, which are predicted to strain both domestic growth and international trade relations.
This rate cut represents a significant shift in the central bank’s policy stance, as it seeks to mitigate the impact of external economic factors, including global trade disputes, on the UK economy. While the decision was not unanimous, it underscores the BoE’s commitment to supporting growth during a time of heightened economic uncertainty.

Economic Pressures from U.S. Tariffs

The primary factor influencing the Bank of England’s decision to lower interest rates is the ongoing trade tensions between the U.S. and several countries, including the UK. U.S. tariffs, particularly those imposed on steel, aluminum, and automotive goods, have had a ripple effect across global markets, increasing costs for businesses and disrupting supply chains.
The effects of these tariffs are anticipated to be especially significant for sectors dependent on international commerce and imported goods. British enterprises, in particular, are grappling with escalating manufacturing expenses, which are ultimately being transferred to consumers through increased prices. This, in turn, is contributing to inflationary pressures in the UK, complicating the central bank’s efforts to stabilize the economy.
The BoE’s rate cut is aimed at alleviating some of the economic strain, encouraging borrowing and investment in sectors most affected by the tariffs. Reducing interest rates typically lowers the cost of borrowing, which can encourage business investment and consumer spending, helping to counterbalance some of the adverse impacts of the tariffs.

Diverging Opinions Among Policymakers

The interest rate cut did not receive unanimous support, as the Bank of England’s Monetary Policy Committee (MPC) was split—some members pushed for a deeper reduction to boost economic activity, while others preferred a more restrained strategy.
In the end, a 5-4 vote resulted in the 4.25% rate, marking a significant divergence of opinions within the committee.
The division within the MPC highlights contrasting perspectives on the most effective way to steer the economy amid external pressures.
Some members argue that a more aggressive stance is needed to buffer the UK against global economic headwinds, while others are concerned about the potential long-term Consequences of a swift rate cut, including rising inflation and the potential for asset bubbles.

Managing Inflation and Economic Growth

The BoE’s rate cut is part of its broader effort to balance two critical economic goals: managing inflation while encouraging growth. Inflation in the UK has been persistently high, driven in part by increased energy costs and global supply chain disruptions. However, with growth slowing and economic activity showing signs of stagnation, the central bank has had to make difficult decisions.
The BoE’s decision is a clear attempt to address these competing pressures by making borrowing more affordable, thus supporting economic activity in sectors that are underperforming. However, economists are divided on whether this will be enough to offset the negative effects of tariffs and global uncertainty, particularly with inflation remaining a key concern.

The Outlook for the UK Economy

Despite the interest rate cut, the UK economy remains under significant strain. Ongoing trade disputes, especially the repercussions of U.S. tariffs, are likely to continue creating difficulties for companies and consumers alike. The Bank of England’s ability to stimulate growth through monetary policy alone is limited, especially as the broader global economy faces uncertainty.
The outlook for the UK economy will depend heavily on how external factors, such as tariffs, evolve in the coming months. If the U.S. tariffs remain in place or escalate further, the UK could face continued pressure on its trade relationships, further limiting its economic growth potential.
However, the rate cut could provide some relief in the short term, particularly for industries facing higher borrowing costs and reduced investment. As the BoE continues to monitor the situation, future rate adjustments may be necessary to address ongoing challenges.

Conclusion

The Bank of England’s decision to cut interest rates to 4.25% in May 2025 marks a significant response to global economic challenges, including the negative impact of U.S. tariffs on the UK economy. While the decision was not unanimous, it highlights the central bank’s commitment to supporting economic stability through proactive monetary policy. As the UK navigates this period of uncertainty, the BoE will likely continue to adjust its policies to ensure long-term growth and manage inflation pressures.
In the face of global trade tensions and inflation concerns, the UK’s economic trajectory will depend on both domestic policy decisions and international developments, with the BoE’s rate cut serving as an essential instrument for maintaining this fragile equilibrium.

 

 

 

 

 

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Golden Quarter: Kalyan Jewellers Shines with 36% Profit Jump, ₹1.5 Dividend Sparkle

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Skechers Sold for $9 Billion to 3G Capital Amid Global Trade Tensions
business update - May 6, 2025

Skechers Sold for $9 Billion to 3G Capital Amid Global Trade Tensions

Skechers Sold for $9 Billion to 3G Capital Amid Global Trade Tensions

 

 In a significant move that shakes up the footwear industry, Skechers USA Inc., the global shoemaker, has agreed to be acquired by private equity firm 3G Capital for $9 billion, marking the end of its run as a publicly traded company. The deal, announced on May 5, 2025, comes at a time of economic uncertainty as the U.S.-China trade tensions continue to impact global businesses, particularly those in the manufacturing and retail sectors.

A Deal That Shakes the Footwear Industry

The acquisition, which values Skechers at $63 per share, marks a 36% premium over the company’s stock price before the deal was announced. This strategic move has garnered attention from industry insiders, analysts, and investors alike, signaling a change in how major global brands are navigating an increasingly uncertain global trade environment.
3G Capital, which is known for its aggressive investment strategies in large corporations, will now take Skechers private. The transaction is anticipated to be finalized in the latter half of 2025, subject to regulatory approval.
This acquisition comes as Skechers has been facing significant pressure due to rising tariffs on Chinese-made goods and challenges with global supply chains disrupted by the ongoing trade war.

Skechers’ Decision to Go Private Amid Trade War Pressures

For Skechers, the decision to sell itself and transition into private ownership reflects a broader trend among publicly traded companies seeking greater flexibility in times of geopolitical instability. With the trade war between the U.S. and China threatening margins, Skechers, like many other manufacturers, has been forced to confront the increasing costs of doing business internationally.
According to analysts, the trade war and its aftermath have contributed to rising tariffs on footwear imports from China, a key production hub for Skechers. In addition to these trade uncertainties, Skechers has faced disruptions in its global supply chain, particularly with transportation bottlenecks, increased raw material costs, and labor shortages in critical markets.
Moreover, Skechers has significant exposure to international markets. About 60% of its revenue comes from outside the United States, including key regions like Europe, Asia, and Latin America, where trade policies and local regulations are becoming increasingly unpredictable.

3G Capital’s Strategic Move

3G Capital’s purchase of Skechers highlights its expanding focus on the footwear and apparel market. 3G Capital, which has a reputation for buying undervalued companies, cutting costs, and restructuring operations, has made similar acquisitions in the past, including its buyouts of Burger King and Kraft Heinz.
As a private company, Skechers will likely benefit from 3G Capital’s expertise in operational efficiencies, which could help the company navigate the pressures of an increasingly competitive retail environment. Analysts believe that this private ownership will provide Skechers with more flexibility to invest in growth areas like e-commerce and international expansion without the constant scrutiny of public markets.

Stock Market Reaction and Investor Sentiment

Following the announcement of the acquisition, Skechers’ stock surged by more than 30%, reflecting investor approval of the deal and its favorable terms. Market analysts have noted that this acquisition could set a precedent for other global brands that are looking to go private amid ongoing trade disruptions and market volatility.
“This move signals a growing trend of companies opting for private ownership to avoid the volatility of public markets, especially when faced with such global risks,” said Daniel Clark, an analyst at Global Equities Research. “Skechers has made a strategic decision to focus on long-term growth rather than quarterly earnings pressure, which could prove invaluable in navigating the complexities of global trade.”

What This Means for Skechers and Its Employees

For Skechers, this acquisition marks a new chapter in its history. As a private company, it will no longer be subject to the same level of public disclosure, which could allow the company to make bold, long-term investments without immediate concerns over investor sentiment.
Employees at Skechers, many of whom are based in the U.S., might also see benefits in the form of more stability as the company restructures its operations under 3G Capital’s ownership. However, it remains to be seen whether the aggressive cost-cutting measures typically associated with 3G Capital will impact the workforce or the company’s global production strategies.

Conclusion: A New Era for Skechers

Skechers’ decision to sell for $9 billion and go private is a strategic response to the complexities of the ongoing U.S.-China trade war and the volatile economic environment. While the trade war has created challenges for many businesses, Skechers’ sale signals an opportunity for the company to retool its operations and chart a new path forward.
This development may also indicate a change in how major, well-established brands handle global risk in the face of rising trade tensions and ongoing supply chain challenges. Skechers’ shift to private ownership reflects a larger movement among companies aiming for greater stability and operational freedom, free from the pressures of public investors.
Now under the umbrella of 3G Capital’s expansive portfolio, Skechers could strengthen its position and enhance its ability to navigate today’s volatile global market landscape.

 

 

 

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Traders claim that Trump's tariffs have caused the $82 billion diamond industry to "ground to a halt."
Economy, Market News - April 16, 2025

Traders claim that Trump's tariffs have caused the $82 billion diamond industry to "ground to a halt."

Traders claim that Trump’s tariffs have caused the $82 billion diamond industry to “ground to a halt.”

 

Introduction
A significant factor contributing to the unprecedented slowdown in the worldwide diamond sector, which is believed to be worth $82 billion, is the impact of former US President Donald Trump’s tariff policy, according to merchants and producers. The diamond trade, which was formerly seen as a representation of glitz and economic tenacity, has been negatively impacted by trade restrictions, especially tariffs imposed under Trump’s administration that still have an impact on the supply chain and demand for diamonds worldwide.
Industry insiders now claim that the industry has “ground to a halt,” pointing to weakening international trade relations, surplus inventory, and dwindling sales. The complex problem is examined in this research, which traces its origins to policy choices and examines the wider ramifications for global producers, dealers, and consumers.

Background: The Trump Doctrine and Tariffs

Donald Trump promoted a “America First” economic strategy throughout his presidency (2017–2021) with the goal of closing trade deficits and boosting homegrown industry. This strategy included imposing broad duties on a variety of imported commodities, such as completed jewelry, gemstones, and precious metals.
The diamond industry, which mainly depends on the cross-border movement of rough stones, polishing in specialized hubs, and final retail in the U.S. and Europe, is one of the most sensitive global supply chains that these policies inadvertently disrupted, despite their initial goals of protecting American manufacturers and promoting domestic production.

Present Situation: A Static Market

Traders claim that the diamond industry is at a near stalemate today. Transaction volumes at major trading hubs like New York (USA), Antwerp (Belgium), and Surat (India) are at all-time lows. Due to low demand and rising overhead expenses, many cutting and polishing facilities in India have closed or significantly curtailed their output.
“There are diamonds ready to be shipped, but buyers are reluctant,” says Mumbai-based diamond seller Ravi Mehta. Many merchants are no longer ready to take the risk since high tariffs result in lower profitability. The entire chain seems to be frozen.
Unsold inventory is another issue for retailers in the United States, which continues to be one of the biggest markets for polished diamonds. Demand for diamonds has decreased, particularly for mid-range and high-end diamonds, as a result of a stronger US currency, weak consumer mood, and price increases brought on by import taxes.

Effect on Important Supply Chains and Markets

The global chain that runs the diamond business is extremely intertwined. Botswana, Russia, and Canada are among the African countries that mine rough diamonds the most. After being cut and polished in processing centers like India, these are subsequently shipped to consumer markets, mostly in the United States, China, and Europe.
This flow was interrupted by Trump’s tariffs, especially those aimed at Chinese and Indian commodities. Due to high import taxes on finished jewelry and polished diamonds from Asia, U.S. wholesalers and retailers were forced to either pass the cost on to customers or absorb it themselves, which were both undesirable choices in a market where consumers are price-sensitive.
The repercussions have been dire in India, which does more than 90% of the cutting and polishing of diamonds worldwide. Tens of thousands of workers have been impacted by the widespread practice of layoffs and wage reductions. Meanwhile, mining businesses and the economies that rely on them have suffered across Africa due to a decline in the demand for raw stones.

Alternative Patterns and Lab-Grown Diamonds’ Ascent

The rapid transition to lab-grown diamonds is one unanticipated effect of the unrest. These synthetic jewels, which are nearly identical in composition and appearance to real diamonds, have gained popularity since they are less costly and originate from more ethical sources.
Lab-grown diamonds are also less susceptible to international tariffs because they may be created domestically in countries like the U.S., which is very advantageous for domestic sellers. This move is upending long-standing mining and trade patterns and forcing legacy players to reevaluate their strategies.

Industry Reaction and Policy

Now, the diamond industry is demanding immediate action. Governments have been urged to evaluate trade rules and offer assistance to manufacturers and exporters by trade organizations like the Gem & Jewellery Export Promotion Council (GJEPC) and the World Federation of Diamond Bourses.
Concerns regarding the long-term impacts of protectionist trade policies on consumer prices and global company partnerships have also been voiced by a few US senators. However, there is still little political will to reverse the tariffs imposed by Trump, particularly during an election season when nationalist economic rhetoric is prevalent.

Conclusion: A Sparkling Sector at a Turning Point

The current crisis in the diamond business serves as a reminder of how delicate and interwoven the ecosystem of international trade is. Despite being meant to safeguard local industries, the Trump administration’s tariffs have unintentionally stifled one of the most recognizable luxury industries globally. The future of the diamond trade depends on market adaptation, regulatory changes, and international collaboration because the industry is now at a near stalemate.
Until then, economic uncertainties and geopolitical decisions have dampened what was once a glittering, affluent sector.

 

 

 

The image added is for representation purposes only

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