Editor’s Note
This article examines shifting dynamics in the global diamond industry, highlighting the Netherlands’ role as a key European hub and the outsized influence of U.S. demand. It also explores how new tariffs are introducing fresh volatility into the supply chain.
A blue diamond up for auction at Sotheby’s. [Reuters]
The global diamond market, worth $82 billion, is being shaken by the imposition of tariffs by the Donald Trump administration, the UK’s Financial Times (FT) reported on the 15th.
In Antwerp, Belgium, a diamond distribution hub alongside Dubai, the daily volume of diamond shipments has plummeted by approximately 85% compared to before President Trump announced the tariffs on the 2nd of this month. Karen Rentmeesters, CEO of the Antwerp Diamond Centre, the representative organization for the Antwerp diamond industry, said that diamond shipments from here have virtually stopped since the tariff announcement.
While the 10% tariffs imposed by the Trump administration on the world exclude several minerals such as gold and copper, diamonds were not spared. Furthermore, reciprocal tariffs were also announced depending on the country of origin. The United States, the largest diamond consumer accounting for about half of global consumption, has no diamond mines and imports all of its diamonds.
Richard Chetwode, Chairman of mining company Trucost Resources, pointed out that imposing tariffs on the diamond industry cannot bring manufacturing to the US due to the structure of the industry, stating,
Diamonds mined in countries like Botswana are processed in India after passing through distribution hubs including Dubai.
90% of the world’s diamonds undergo polishing in India, and the country where the polishing process takes place is considered the country of origin for the finished diamond product. The reciprocal tariff President Trump announced for India is 27%. The role the US plays in the supply chain is largely certification. The Gemological Institute of America (GIA), the world’s largest institution, is headquartered in California.
Pritesh Patel, COO of GIA, said that due to the tariffs, they have strengthened operations at eight overseas offices including Hong Kong and Dubai, stating,
He added that they are studying whether diamonds imported into the US solely for certification could be exempt from the tariffs.
