Editor’s Note
This article examines the severe impact of recent U.S. tariff measures on the global diamond industry, highlighting a dramatic decline in shipments from a key trading hub. The situation underscores the far-reaching consequences of trade policies on established international markets.
As the tariff measures implemented by U.S. President Trump continue to take effect, the impact on various industries is gradually becoming apparent. Foreign media reports indicate that the global diamond industry, valued at $82 billion, is in deep crisis. Shipments from Antwerp, Belgium, a major hub for diamond trading, have plummeted to one-seventh (approximately 14.2%) of their previous levels. Industry experts have issued a stern warning, stating that diamond shipments are currently at a standstill, and the entire industry has been effectively “sentenced to death.”
According to the Financial Times, the Trump administration has introduced comprehensive tariff policies, including a 10% levy on diamond imports, with additional reciprocal tariffs applied depending on the country of origin. Notably, many other metals such as gold and copper were not included in this round of tariffs.
The United States, a major consumer of diamonds accounting for about half of global demand, has no domestic diamond mines and therefore relies entirely on imports.
Antwerp, a global diamond trade hub alongside Dubai in the Middle East, has recently seen its diamond exports come to a halt following Trump’s announcement of a new round of global tariffs. Karen Rentmeesters, CEO of the Antwerp Diamond Centre, believes there is no logic behind the U.S. including diamonds in its tariff measures.
Rentmeesters analyzed the current situation, pointing out that daily shipments are now only at one-seventh of normal levels.
In recent years, the diamond industry has been in a downturn, primarily impacted by the COVID-19 pandemic and competition from lab-grown diamonds, leading to a sharp decline in consumer demand.
Richard Chetwode, Chairman of mining company Trustco Resources and a senior industry expert, emphasized that imposing tariffs on diamonds will not bring diamond manufacturing back to the United States.
Over 90% of the world’s diamonds are cut and polished in India, and the “country of origin” for finished diamonds is determined by where they are processed. Therefore, the U.S. imposition of a 27% retaliatory tariff on Indian goods is expected to severely impact India’s multi-billion dollar diamond export industry, unless a tariff exemption agreement can be reached between the U.S. and India.
Diamond analyst Paul Zimnisky believes that “market uncertainty” poses a challenge to global diamond demand.