Belgian Diamonds Lose US Tariff Exemption as Trump Reimposes 10% Global Duty

 

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

Trump Imposes 25% Tariff, Plus “Penalty” on India Exports

India’s diamond industry today (30 July) had its worst fears confirmed as the US announced all imports would be subject to 25 per cent tariffs, effective as of Friday (1 August).

In addition it will face an unspecified extra penalty for buying military equipment, oil and other goods from Russia.

Lingering hopes of a last-minute deal to avoid the additional tariffs were crushed when President Donald Trump singled out India, the world’s biggest diamond manufacturer, for special mention on his Truth Social platform.

“While India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” he wrote.

Kirit Bhansali, chairman of the India’s Gem and Jewelry Export Promotion Council (GJEPC) reacted to the news saying: “This is a deeply concerning development. The Indian gem and jewellery sector, in particular, stands to be severely impacted.

“The United States is our single largest market, accounting for over $10 billion in exports – nearly 30% of our industry’s total global trade.

“A blanket tariff of this magnitude will place immense pressure on every part of the value chain.”

Colin Shah, managing director of diamond jewelry manufacturer Kama Jewelry, reacted to today’s news, said: “With the US being one of the key export destinations, this will severely impact the sectors like gems and jewellery that are heavily dependent on exports.

“Going ahead, we expect trade activities to remain muted with U.S. However, we also need to wait and watch how the situation unfolds.”

Less than two weeks ago, Trump said the US and India were “very close” to reaching an interim agreement, but those talks stalled, primarily over agricultural and dairy goods.

And only days ago US Trade Representative Jamieson Greer told reporters: “We continue to speak with our Indian counterparts. We’ve always had very constructive discussions with them.”

Source: DCLA