Russia’s diamond miner ALROSA CEO-Chairman Pavel Maryinchev said diamond companies will need time to adjust to the US tariff hike but the long-term impact is unlikely to be severe, adding that India’s cutting and polishing sector should be able to “adapt and minimise the effect”.“According to GJEPC data, the amount of diamonds purchased by Indian cutting and polishing businesses surged in August and September and fell in October. Our expectations are that the high import tariffs will not have a long-lasting impact, and businesses will be able to adapt and minimize the effect,” he told ET.Maryinchev added that some of the additional costs would eventually be passed on to consumers. “There’s a high probability that the rising U.S. tariffs on polished diamond imports from India will have the same consequences as those in many other industries: some of the extra costs will unfortunately be passed on to consumers,” he said. He noted that luxury jewellery buyers are “less price-sensitive” and that retail brands may absorb some costs “by temporarily reducing markups”.The ALROSA chief said diamond jewellery manufacturers may need time to adjust to the new tariff structure and reshape production processes. With the Christmas season approaching, he expects India’s demand to revive once positive sales data emerges.Maryinchev highlighted ALROSA’s position as the world’s largest diamond miner, accounting for over 30% of global output and holding more than 40% of global reserves. With no major new deposits being discovered and existing mines yielding less, he said falling supply is stabilising the market. “We are already seeing less price volatility in 2025 than we did in the previous two years,” he said.Asian demand and market cycleALROSA has adjusted operations too, suspending production at less-profitable mines. After producing 33 million carats in 2024, output will fall another 10–15% this year. The CEO said production will depend on market conditions but the company aims to remain the global leader.He acknowledged that Indian cutting and polishing units have faced difficulties for three years but said key markets — the US, Europe, Middle East and India — continue to show strong demand. “In the third quarter of 2025, sales of the major Indian retailers once again showed double-digit growth (29% year-on-year on average),” he said, adding that the latest data from China is also encouraging.He cited two factors behind confidence in a market recovery: stable global jewellery demand and declining diamond production. “Inventories in all parts of the diamond pipeline have been gradually returning to normal. I believe that the right conditions for prices to recover are taking shape.”Synthetic diamonds losing steamMaryinchev said fears about synthetic diamonds replacing natural stones are diminishing. He pointed to steep price declines due to the ease of mass production. “We are witnessing a plunge in prices for man-made diamonds… in the third quarter of 2025 alone, wholesale prices dropped by almost 40% year-on-year,” he said, adding that the price difference with natural diamonds now exceeds 95%.He said synthetic stones have moved into the category of “expensive costume jewellery”, alongside moissanite and cubic zirconia. “They are not unique. They don’t have a history of their own. This is a very strong argument when it comes to luxury consumers: this is why they are willing to pay a lot for natural diamonds,” he said.Environmental positioningMaryinchev said ALROSA’s ability to guarantee natural origin is a key competitive edge and pushed back against claims that lab-grown stones are more environmentally friendly. “Diamond synthesis requires vast amounts of energy and causes air pollution. International studies put the carbon emissions from lab-grown diamonds at 300–500 kg CO₂ per carat,” he said.He added that ALROSA’s natural diamonds have a “negative carbon footprint” with over 1 million tonnes of greenhouse gases absorbed annually, equivalent to a million-acre forest — a finding he said was confirmed through an independent audit.The global jewellery market is valued at around $370 billion, with natural diamond jewellery accounting for over $80 billion. “The market has enough room for both synthetic and natural diamonds. And the latter are poised to become rarer with each passing year,” he said.