The recent US tariff announcement in April 2025 has sent shockwaves through the global diamond and jewelry industry. President Donald Trump’s decision to impose new tariffs has impacted every major diamond hub-India, Antwerp, Dubai, China, and more. Here’s a news blog summarizing the main points and what lies ahead for the industry.
What Are the New Tariffs?
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Starting April 5, 2025, the US imposed a baseline 10% tariff on almost all countries and products.
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Some countries face even higher “reciprocal tariffs.” For example, India faces a 26-27% tariff, and China up to 145%.
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In retaliation, China has imposed a 125% duty on American goods.
Direct Impact on the Diamond Industry
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The announcement caused chaos in the industry, with many companies rushing to ship goods to the US before the tariffs took effect.
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India, the world’s largest diamond supplier, now faces a 27% duty on its goods, raising serious concerns for Indian exporters.
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Chinese diamond and jewelry exports could see total tariffs ranging from 54% to 79%, making them far less competitive.
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Shipments from hubs like Antwerp and Dubai to the US have dropped to less than 15% of previous levels.
Reactions from Traders and Manufacturers
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Many companies tried to send their goods to the US before the tariffs kicked in.
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New York dealers and traders are struggling to set prices amid the uncertainty.
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Small and medium manufacturers, especially in Indian cities like Surat, Mumbai, and Jaipur, are under intense pressure. With already thin margins, the increased costs could force many out of business.
Impact on Consumers and the Market
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US retailers will now pay higher prices, which will ultimately be passed on to consumers. This could lead to a decline in jewelry purchases.
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Prices of diamonds, gold, silver, platinum, and imitation jewelry are all expected to rise.
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Even pearl jewelry will face tariffs as high as 27%.
What’s Next?
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US companies may look to source from countries with lower tariffs.
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Some may focus on “Made in USA” jewelry, but specialized skills and raw material availability could limit this option.
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Major changes in the supply chain are likely, with manufacturing hubs possibly shifting.
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If tariffs remain for long, jobs in India, China, and African countries could be at risk.
Conclusion
The US’s new tariffs have thrown the global diamond and jewelry trade into turmoil. Major hubs like India, China, and Antwerp are facing significant challenges, and US market prices are set to rise. In the coming months, the industry will need to adapt-whether by changing supply chains, adjusting prices, or seeking new markets. For now, the entire sector is navigating a period of great uncertainty.