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

Botswana aims to negotiate bigger stake in HB Antwerp diamond dealer

Botswana intends to renegotiate its proposed purchase of a stake in Belgian gem dealer HB Antwerp to double the size of its shareholding at no extra cost following the downturn in the diamond market, the country’s mines minister said on Tuesday.

Botswana is the world’s biggest diamond producer by value, meaning its economy has been disproportionately hit by a drop in demand for diamonds caused by a global economic slowdown.

Lefoko Moagi told Parliament the weaker diamond market had also affected the company’s valuation, giving the country room to renegotiate.

“We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023,” Moagi said. “Instead of the 24%, we will negotiate to get 49.9% for the same amount initially proposed.”

Finance ministry budget documents showed in February that the country had set aside 890 million pula ($65.95 million) for the 24% stake, valuing the Belgian company at about $275-million.

The HB Antwerp deal was announced during Botswana’s negotiations for a new sales contract with Anglo American’s diamond unit De Beers in March 2023.

As Botswana sought to increase its power to market its stones outside a decades-old agreement with De Beers, it said the HB Antwerp deal would strengthen its presence in the downstream diamond industry.

It includes supplying the trader with rough diamonds for five years through the state-owned Okavango Diamond Company (ODC).

Source: miningweekly

Belgian police conduct raids after suspected Russian diamonds seized

Antwerp police conducted six raids on Wednesday and made four arrests as part of an investigation into some diamond imports suspected of being Russian-origin, Antwerp’s public prosecutor office said in a statement on Friday.

The investigation is the first related to the EU and Group of Seven (G7) import ban on diamonds from Russia that began on Jan. 1 to punish Moscow for its invasion of Ukraine. A wider ban on Russian-origin stones imported via third countries began on March 1. Russia’s state-owned company Alrosa is one of the world’s largest diamond miners.

The investigation was launched after customs officials seized diamonds in late February, the statement said. A spokesperson for the prosecutor said three shipments had been confiscated.

The Belgian city has for centuries been a global diamond hub, particularly for rough diamonds, though 90% of polishing is now done in India.

Sources familiar with the matter said the value of the three seized shipments was in the millions of euros. One source specified the overall value was around 8 million euro ($8.64 million).

A spokesperson for the prosecutor declined to comment on the combined value of the shipments. In the statement, the prosecutor’s office added that documents and digital media were seized during the raid.

Source: DCLA

Would be interesting to know how they test for origin

Botswana Assigns $65M for Stake in Belgian Manufacturer

Botswana has designated BWP 890 million ($65 million) from its new fiscal 2024-2025 budget for the purchase of a 24% stake in Belgian manufacturer HB Antwerp.

The deal, which it first announced in March, calls for the African country to supply rough from state-owned Okavango Diamond Company (ODC) to HB Botswana for five years. The partnership would operate in a similar fashion to HB’s previous supply deal with Lucara Diamond Corp, enabling Botswana to retain a share of the polished profits.

Lucara terminated its rough-supply agreement with HB in September, citing a “material breach of financial commitments” by the Belgian manufacturer as the reason for the split. That decision came on the heels of HB’s departure from cofounder and managing partner Oded Mansori, whom it has since reinstated to his original role.

There was media speculation late last year that the Botswana government was pressuring Lucara to reconnect with HB, and that the split could affect Botswana’s interest in the manufacturer. Lucara owns the Karowe mine in Botswana. The miner has since announced that it planned to form new supply deals with other vendors.

Source: DCLA