U.S. Customs and Border Protection terminated all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) as of midnight EST on Feb. 24, following a Supreme Court ruling that the president cannot use IEEPA to impose tariffs. However, a new 10% global import surcharge under Section 122 of the Trade Act of 1974 has already taken effect, affecting most imported goods. For jewelry buyers, this means continued higher costs for imports, though under a different legal framework, with potential further tariff changes ahead.
Tariff transition and legal basis
The Supreme Court struck down IEEPA-based tariffs, including country-specific reciprocal tariffs, but the ruling does not affect tariffs under other laws, such as steel and aluminum duties. President Trump immediately imposed a temporary 10% surcharge on nearly all imports using Section 122 of the Trade Act of 1974, which allows duties up to 15% to address balance-of-payments deficits. The new surcharge will last 150 days unless Congress extends it.
Exemptions and jewelry-specific impact
Raw gold products and items listed in Annex II of the reciprocal tariff order are exempt from the new surcharge. However, as of press time, it remains unclear whether products in Annex III—including rough and polished natural diamonds, gemstones, and natural pearls—will be exempt. These items were previously set for tariff exemption pending trade deals, but no such deals have been finalized. Importers of jewelry materials should monitor updates closely.
Compliance and logistics signals
The Jewelers Vigilance Committee (JVC) advises importers to work with customs brokers and international trade counsel to ensure entries filed on or after Feb. 24 are processed correctly under the new tariff structure. The administration plans to hold tariff hearings in coming months to re-implement additional tariffs using other legal authorities. Importers should prepare for ongoing cost increases and potential further regulatory changes.
What buyers should watch
Jewelry importers should track the status of Annex III exemptions for diamonds, gemstones, and pearls, as these could significantly affect sourcing costs. The 150-day window for the current surcharge means buyers should factor in potential tariff extensions or new duties. Engaging with trade associations like JVC and Jewelers of America can provide timely updates and advocacy support.
Source: Read the original report | Published: February 24, 2025