Editor’s Note
This article reports on a U.S. decision to allow the import of certain Russian-origin diamonds despite existing sanctions. The move represents a significant policy shift with potential implications for international trade and diplomatic relations.
US President Donald Trump has made a major decision regarding Russia. Despite sanctions, the US has granted an exemption for the import of diamonds from Russia.
The Office of Foreign Assets Control (OFAC) has shared information. According to it, diamonds can be imported until September 1, 2026, but certain conditions have been set. If a diamond weighs more than 1 carat and was outside Russia before March 1, 2024, it can be imported. Similarly, if it weighs more than 0.5 carats and was outside Russia before September 1, 2024, it can also be imported.
US President Trump has imposed a 50 percent tariff on India. He is troubled by why India buys oil from Russia, while China also buys oil from Russia and has now itself granted an exemption for diamonds. Trump had alleged that India is funding the Ukraine war by buying oil from Russia. Now, India-US relations are also going through a period of ups and downs.
Trump’s tariffs could also cause significant loss to the US. Tariffs imposed on India and other countries could increase inflation, potentially causing the US economy to shrink by 0.4-0.5 percent. The additional 25 percent tariff imposed by the US on India came into effect from Wednesday. Combined, the US tariff on Indian exports has become 50 percent.
