US Tariffs Shake Up World’s Diamond Centers 

US President Donald Trump’s April 2 tariff announcement shocked the diamond industry and the world. The new import duties will impact every corner of the trade, from mining to retail.

Tariffs of 10% on almost all countries — and virtually all products — went into effect on April 5. On April 9, Trump postponed the implementation of higher reciprocal rates on specific countries by 90 days, just as they were about to come into effect. This gave a reprieve to India, which was facing 26% duties on its goods.

The main exception was China, which Trump has slapped with a 145% tariff. This heated up the trade war with Beijing, and the government reacted with 125% duties on American goods.

The initial response to the tariff policy in the diamond industry was a market freeze. Companies outside the US saw sales come to a standstill. There was some demand from American businesses trying to get their hands on goods before the higher rates came in.

The rough sector started to panic, worried that polished demand would dry up. Manufacturers moved inventory to US branches if they could get it on the plane before the tariff deadline. New York dealers, unsure how to adjust prices, waited for everyone else to make the first move. No one knew how trade shows, memo and grading would work.

Certain points grew clearer over the following days. For instance, the industry became familiar with the Temporary Importation Under Bond (TIB) mechanism for trade shows and shipments to labs. But there is deep concern and confusion about the new regime.

This report goes through the potential impact of the tariffs on each major diamond center….