Diamond Trade Sees Mixed February Amid Tariff Chaos

RAPAPORT PRESS RELEASE, March 5, 2026 — The diamond market was uncertain in February as tariffs underwent sudden changes. US prices declined; prices of diamonds located elsewhere were up in some categories and down in others.

The Iran war, which affects Israel and Dubai, added to the uncertainty in early March. Dubai is an important trading center for rough and polished.

The US and India reached an agreement on February 2 that reduced duties on Indian diamonds to 25% and was set to abolish the levies completely. On February 20, the US Supreme Court struck down President Donald Trump’s tariff regime. On February 24, he imposed new 10% tariffs. The industry was unsure whether the exemptions it had negotiated under the old system would apply to the new one.

The RapNet Diamond Index (RAPI™) — which tracks round, D to H, IF to VS2 diamonds — fell 1.3% in February for 1-carat goods. The RAPI for 0.30-, 0.50- and 3-carat diamonds increased 1%, 0.3% and 0.2% respectively.

Expectations that tariffs would disappear trimmed the premium that US-located diamonds had commanded. For the 1-carat diamonds that contribute to the RAPI, US prices declined 2.3%, with Indian prices down 0.8%. For 0.30 carats, US prices slumped 14.3%, and India’s increased 1.2%.

Synthetics continue to take market share. They now account for 61% of US engagement-ring center stones, The Knot reported in February.

The Centurion show and Tucson gem fairs signaled good demand for gemstones and high-end diamond jewelry. US retail was positive over Valentine’s Day. Chinese sales were slow during Lunar New Year. Trading at this week’s Hong Kong shows was mixed, with larger stones doing well.

De Beers increased prices of 5-carat and larger rough at its February sight, reflecting shortages and solid US demand for 2-carat and larger polished. Indian manufacturers were hopeful for a recovery following a drop in mining.

However, Anglo American reduced De Beers’ book value from $4.1 billion to $2.3 billion.

Media Contact: media@rapaport.com
Sherri Hendricks +1-702-893-9400

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 online diamond- and gemstone-trading marketplace, with over $8 billion in daily listings; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds. Additional information is available at www.rapaport.com.