The World Diamond Council (WDC) is calling on the US government to provide a dispensation for the diamond industry when implementing tariffs, noting the levies would put more than 200,000 jobs at risk.
While the council — which represents the international natural-diamond value chain — acknowledged the government’s stance on fair and reciprocal trade, it emphasized that diamonds are not produced in the US but are “vital to the health of the American jewelry industry,” the WDC said Monday. It also pointed out they were an essential contributor to the national economy.
The group has been working on an initiative to appeal to the US government on diamond exemptions since shortly after the tariffs were announced.
Tariffs on diamonds would function as a consumption tax, raising prices on engagement rings and other jewelry, WDC explained. US retailers are already worried about inventory pressures and are therefore starting to charge higher prices for goods, which threatens the industry in the US — the world’s largest consumer of natural-diamond jewelry.
The US jewelry trade generates more than $117 billion in annual economic activity and supports over 200,000 American jobs, while US jewelry sales total around $91.5 billion annually, the WDC said. Meanwhile, domestic jewelry manufacturing and exports contribute around $15 billion and $10.5 billion, respectively, each year.
“A tariff on natural diamonds would put all of this at risk,” the WDC stated. “An exemption for natural diamonds would help ensure stable supply chains, protect US manufacturing competitiveness and prevent added costs for American consumers.”
On April 5, the US imposed 10% baseline tariffs for all countries, with higher reciprocal tariffs for specific nations set to go into effect on April 9. On April 7, diamond sales came to a standstill while the industry tried to figure out how the tariffs would affect business and manufacturers shifted goods to the US. President Donald Trump partially walked back most reciprocal tariffs, implementing a 90-day pause for all countries, while hiking China taxes to 145%. However, with the halt set to end in the next two months, tariffs are taking a toll on rough and polished diamond trading and raising serious concerns in the sector about the future.
“We support President Trump’s drive for fair and reciprocal trade,” said WDC president Feriel Zerouki. “The current tariff review has highlighted the need for fair treatment across the board. Our members are united in calling on the US government to exempt natural diamonds and on governments around the world to support the exemption reciprocally, ensuring that trade policies support jobs, competitiveness and consumers. The diamond industry is aligned, and our members are engaging directly with officials to support a positive resolution.”
Image: Polished diamonds. (Shutterstock)
