Tariffs Fuel Volatility in Diamond Prices

RAPAPORT PRESS RELEASE, August 5, 2025, Las Vegas… Diamond prices declined for most of July amid uncertainty over US tariffs. Major retailers postponed holiday purchases, creating pressure on prices and inventory following a hike in manufacturing. 

US dealers raised prices on the final day of the month in response to President Donald Trump’s July 30 announcement of 25% duties on Indian imports. The trade began moving inventory to the US ahead of August 7, when the new rate goes into effect.  

The RapNet Diamond Index (RAPI™) for 1-carat goods — reflecting round, D to H, IF to VS2 diamonds — fell 1.4% in July. Smaller diamonds saw a sharper downturn amid a growing oversupply: The index for 0.30- and 0.50-carat stones declined 3.3% and 4.7% respectively. Larger stones enjoyed more stability, with the 3-carat RAPI slipping 0.3%. Prices of round, 1-carat, D to J, SI diamonds slid 4.6% during the period. 

Production in India increased from February through June. Steady quantities of fresh goods have entered the market in the past two months. Inventories of rounds under 1.20 carats have risen sharply, prompting suppliers to reduce prices as a way of generating sales. 

De Beers’ policy of offloading rough at slimmer margins enabled manufacturers to sell polished profitably at low prices. De Beers reported an underlying loss of $245 million for the first half of 2025, compared with a $73 million profit a year earlier. Small miners cut output and workers, reflecting pressure on the sector. 

Demand for elongated fancy shapes remained strong in July. Prices were stable in most categories. Goods of 2 carats and larger were in short supply. 

Independent US jewelers enjoyed steady sales and took on new memo goods. However, the larger retailers delayed their seasonal purchases because of the tariffs and a more cautious approach to inventory. They are also shifting further toward synthetics. 

Chinese diamond demand remained slow but began to stabilize. The Indian domestic market awaited the India International Jewellery Show (IIJS) in Mumbai for signs of the sector’s health. 

Rapaport Media Contacts: media@rapaport.com
US: Sherri Hendricks +1-702-893-9400
International: Avital Engelberg +1-718-521-4976 

About the RapNet Diamond Index (RAPI™): The RAPI is the average asking price, in hundred dollars per carat, of the 10% lowest-priced round diamonds in each of the top 25 quality categories (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet® (www.rapnet.com). Additional information is available at www.rapaport.com. 

About the Rapaport Group: The Rapaport Group is an international network of companies providing added-value services that support the development of ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1978, the group has more than 20,000 clients in over 120 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Price List for diamonds, as well as research, analysis and news; RapNet, the world’s largest diamond trading network, with daily listings of 1.5 million diamonds valued at more than $7.2 billion; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds. Additional information is available at www.rapaport.com.