US tariffs: industry argues in favour of targeted exemption for diamonds

The US government's new tariff regulations also affect diamonds, as the country imports stones cut in India. The World Diamond Council (WDC) has issued a statement calling for the tariffs to be suspended.

Left: Man with a magnifying glass examining a polished diamond. (Symbolic image) © Dillon Wanner/ Unsplash.com

World Diamond Council pushes for customs exemptions

US President Donald Trump's planned new tariff regulations reveal the many complex interdependencies in the diamond industry's supply chains. Trade relations between India and the US are particularly affected. Insight Luxury recently reported on this in an article.

Trump tariffs: impact on the diamond industry

Currently, tariffs of 10 percent apply to exports from India to the US, which are set to increase to 26 percent starting in July. China and the US are currently moving closer to talks after the US government announced tariffs of 146 percent on the People's Republic. 

Now the World Diamond Council (WDC), which represents the international diamond value chain, issued a statement. In this statement, the WDC acknowledges that the administration's policies are aimed at strengthening American trade. For precisely this reason, however, the WDC strongly requests a specific exemption for natural diamonds. This would place the gemstones on the so-called "Annex II" list, which currently also includes platinum, gold, and silver. These goods are exempt from tariffs. The World Diamond Council emphasizes:

“Natural diamonds are not produced in the United States, but are essential to a healthy American jewelry industry and make a significant contribution to the national economy.”

200,000 jobs in the sector affected

The U.S. jewelry industry generates more than $117 billion annually and supports more than 200,000 jobs. U.S. jewelry sales total approximately $91.5 billion annually, while domestic jewelry manufacturing and exports generate approximately $15 billion and $10.5 billion, respectively, each year.

Around 193,000 Americans work in jewelry stores, and thousands more jobs exist in supporting industries. Imposing tariffs on diamonds would jeopardize all of this, according to the WDC.

"US tariffs on diamonds would function as a consumption tax, pushing up the prices of engagement rings, gifts, and other jewelry purchases. Retailers are already reporting concerns about inventory pressure. The uncertainty is gradually translating into higher prices for consumers."

The WDC hopes that diamond tariff revenue will create a more stable supply chain, allowing the US to remain competitive and not pass on the additional costs to consumers.

The United States is the largest market for natural diamond jewelry, and the success of the industry, including entrepreneurship and creative talent, depends significantly on the availability of diamonds.