Trump’s diamond tariffs bring global trade to a standstill

Trump’s diamond tariffs cripple global trade, Antwerp sees major slowdown.

The global diamond trade has been brought to a virtual halt by the Trump administration’s sweeping new tariffs, which include a 10% levy on imported diamonds. Antwerp, one of the world’s busiest trading hubs for the precious stones, has seen shipments drop to just one-seventh of their usual volume since the announcement, according to Karen Rentmeesters, CEO of the Antwerp Diamond Centre. Despite a temporary pause on retaliatory tariffs, the 10% base tariff remains in effect, severely disrupting supply chains, the Financial Times reported.

Industry reeling from existing headwinds The tariffs come at a difficult time for the $82 billion diamond industry, which was already struggling with reduced demand due to the COVID-19 pandemic and growing competition from lab-grown diamonds. “If you are suddenly putting tariffs on it, you are crucifying it,” said Richard Chetwode, chair of mining company Trustco Resources. He and others argue the new tariffs won’t bring manufacturing to the US, since the country lacks any domestic diamond mining.

Ripple effects through India and the US certification sector India, which processes over 90% of the world’s diamonds, is particularly exposed. Because diamonds are considered to originate from the country where they are polished, US plans for a 27% tariff on Indian goods could severely hit India’s multibillion-dollar export industry unless a bilateral deal is reached. Meanwhile, the US-based Gemological Institute of America (GIA), which certifies diamonds, is looking to expand operations overseas to mitigate the impact of the tariffs, especially in Dubai and Hong Kong.

Retailers and miners brace for further fallout Major retailers and miners are also feeling the pressure. Signet Jewelers, the largest diamond jewellery retailer globally, informed suppliers it would not bear the cost of the tariffs and urged them to expedite shipments before additional costs kick in. Anglo American, owner of diamond giant De Beers, has written down the company’s value by $4.5 billion and is preparing to spin it out in an IPO later this year. Analysts warn the trade war could curb demand for luxury goods like diamonds, with uncertainty driving consumer caution.

A fragile recovery in jeopardy While the diamond market was just beginning to recover from previous downturns, the new tariffs threaten to derail that progress. “When people are uncertain, they are hesitant to buy,” said independent diamond analyst Paul Zimnisky. With no clear resolution in sight, the Trump administration’s tariff strategy is casting a long shadow over an already fragile global industry.