US Tariffs on Canadian Imports to Include Diamonds and Jewelry

US President Donald Trump has imposed 50% taxes on nearly $20 billion worth of Canadian goods entering the US, including on polished diamonds and jewelry.

The new tariffs will apply from August 19, the American Gem Trade Association (AGTA) said Tuesday. The goods include nonindustrial diamonds, loose polished diamonds, silver, gold necklaces and chains, precious-metal jewelry and imitation jewelry, the Jewelers Vigilance Committee (JVC) reported in a member alert. 

The duties are based on Section 338 of the Tariff Act of 1930, a seldom-used Depression-era provision that allows tariffs without the lengthy investigations required in pending Section 301 cases, AGTA said.

According to the US Trade Representative (USTR), the president determined that Canada discriminates against or places an undue burden on US commerce. The three proclamations Trump issued identify Canada’s auto trade, dairy protections and alcohol sales as discriminatory sectors, AGTA said. The duties are relevant even to products that qualify under the United States-Mexico-Canada Agreement (USMCA), the free trading pact, and are in addition to any other tariffs or fees.

“While the 30-day window [between the tariff announcement and implementation] allows time for bilateral negotiations, there are numerous exemptions such as for energy, critical minerals, and others,” AGTA explained. “Although not specifically identified, we are hopeful that gemstones are included in the mineral exception.” 

Image: A man inspecting a polished diamond with a loupe. (Shutterstock)