Diamond Industry Seeks Exemption From U.S. Tariffs Amid Trade Uncertainty

The global diamond industry is rallying together in a unified effort to secure an exemption for natural diamonds from the United States’ import tariffs. This initiative, spearheaded by the World Diamond Council (WDC), comes in response to a looming tariff hike on goods imported from India—where most natural diamonds are cut and polished.

Currently, a 10% tariff is imposed on natural diamond imports into the U.S., but this rate is set to surge to 26% by July, raising alarms across the jewelry industry. The WDC is urging stakeholders around the world to support the lobbying push, which aims to add natural diamonds to Annex II of the U.S. Harmonized Tariff Schedule—a list that already exempts raw gold, silver, and platinum from such duties.

Impact on American Jobs and Consumers

In its statement, the WDC emphasized that approximately 193,000 Americans work in jewelry retail, and increased tariffs on natural diamonds could put many of those jobs at risk. The council warned that the tariff would function like a consumption tax, inflating prices on popular jewelry items such as engagement rings and anniversary gifts.

“Retailers are already reporting concerns about inventory pressures,” the WDC noted. “The uncertainty is beginning to translate into higher prices for consumers.”

Support From Industry Leaders

Feriel Zerouki, president of the World Diamond Council and VP of corporate affairs at De Beers, reiterated the importance of international cooperation to push for tariff relief.

“We need our members to ask for relief for the U.S. trade,” Zerouki said. “If the tariff is zero into the U.S., it should be zero from the U.S. as well.”

De Beers CEO Al Cook also highlighted the lack of domestic diamond production in the U.S., stating, “The United States doesn’t contain any kimberlites. Regardless of what tariffs are in place, you will never have diamond mining jobs in the United States.”

Cook added that a broader outcome of the lobbying efforts could be the elimination of tariffs on natural diamonds worldwide, benefiting all stakeholders in the supply chain.

Trade Policy in Flux

The call for exemption comes at a time of fluid trade negotiations. In a notable shift, the U.S. government announced a temporary reduction in tariffs on Chinese imports—from 145% to 30% for a 90-day period—as both nations work toward a more comprehensive trade agreement.

U.S. Commerce Secretary Howard Lutnick, known for his past support of jewelry e-tailer Ritani, hinted that items not typically produced in the U.S.—like mangoes and possibly diamonds—may warrant tariff exemptions.

As the July deadline approaches, the diamond industry is watching closely, hopeful that its lobbying efforts will secure favorable treatment under evolving U.S. trade policies.

For the original article, visit JCK Online