The global diamond trade is facing renewed uncertainty after Belgian diamonds lost their US tariff exemption under a newly imposed 10% global import duty announced by US President Donald Trump.
The move follows a ruling by the Supreme Court of the United States, which struck down the legal basis for earlier tariffs introduced under the Emergency Economic Powers Act. In response, the Trump administration enacted a blanket 10% global tariff under Section 122 of the Trade Act of 1974 — a provision that requires duties to be applied consistently to all countries.
Antwerp Diamond Industry Hit Hard
The removal of exemptions directly impacts Antwerp, one of the world’s most important diamond cutting and polishing centres. Antwerp World Diamond Centre confirmed that companies should assume the 10% global duty now applies to polished diamonds entering the US until further clarification is provided.
Previously, diamonds polished in Europe had been exempt from US tariffs under a negotiated EU-US arrangement. That exemption gave Belgium a competitive edge over rival trading hubs such as India and Dubai. Under the new regime, however, those carve-outs no longer appear to apply.
The economic consequences could be significant. While the affected EU trade represents approximately US$4.6 billion annually — less than 1% of the EU’s total exports to the US — the impact is highly concentrated in specific industries, particularly diamonds.
Matthias Diependaele, Minister-President of Flanders, described the development as a “shockwave in Antwerp,” warning that trade volumes are under pressure, volatility is rising, and predictability in US demand has virtually disappeared.
Legal Constraints Under Section 122
Legal experts note that Section 122 of the Trade Act of 1974 mandates consistent application of tariffs across all countries. This effectively prevents the US administration from granting country-specific exemptions, including those previously negotiated with the European Union.
According to independent trade monitoring body Global Trade Alert, while many globally applied product exemptions — such as those for electronics — have been carried over into the new tariff regime, hundreds of country-specific exemptions agreed with the EU last year, including those covering diamonds and cork, are absent from the latest published exemption list.
Economist Johannes Fritz, CEO of Global Trade Alert, stated that the use of Section 122 effectively “handcuffs” the administration, making country-specific carve-outs legally problematic.
What This Means for the Global Diamond Market
For the international diamond pipeline, the reimposition of tariffs adds another layer of complexity to an already fragile market. Supply chains that rely on cross-border polishing, trading and distribution may face increased costs and pricing pressures in the US — the world’s largest consumer market for natural diamonds.
From a certification and grading perspective, heightened market volatility underscores the importance of independent, transparent assessment standards. As Australia’s recognised authority and official CIBJO laboratory, DCLA continues to monitor global trade developments closely to ensure clarity, confidence and integrity within the diamond sector.
Further clarification from US and EU officials is expected in the coming weeks as discussions continue regarding the duration and scope of the new tariff regime.
Source: DCLA
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