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The American Gem Trade Association (AGTA) has asked the US government to remove the new 10% global import tariff on gemstones, and potentially diamonds.
On February 20, after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs, which he issued under the International Emergency Economic Powers Act (IEEPA), he announced he was imposing a temporary import surcharge of 10%.
The new tariff, which is pursuant to Section 122 of the Trade Act of 1974, will remain in effect for 150 days unless Congress votes to extend it, AGTA said Wednesday. However, Trump has indicated he may pursue other available tariff mechanisms. AGTA has also submitted a formal request to the office of the United States Trade Representative (USTR) urging that it add precious and semiprecious colored gemstones to the exception list because they are not available domestically and should therefore qualify for tariff exemptions under Annex I or Annex II.
AGTA has been involved in lobbying the US government on tariffs, one of the results of which was diamonds and gemstones appearing in Annex III, a list of products that the White House is open to exempting from the duties for “aligned” countries. That meant Indian diamonds and gemstones were on track for an exemption after the US and India reached a trade deal. However, it is unclear whether the Annex III exceptions apply to the new tariff regime that went into effect on Tuesday.
In the event the request to remove the across-the-board tariff is denied, AGTA has asked the USTR to confirm that Annex III still a viable pathway to eliminating tariffs on colored gemstones on a country-to-country basis, it stated.
AGTA concentrated on colored gemstones solely in this request, but the organization and its trade specialists believe that if the requested exemption is granted to colored gemstones, it will de facto extend to diamonds as well. That was the case when the US and the European Union reached a trade agreement on June 27, AGTA said.
“AGTA will continue to work tireless for the elimination of tariffs on gemstones imported into the US. We will not give up. Failure is not an option,” said AGTA president Bruce Bridges and CEO John Ford.
Image: Colored gemstones. (Shutterstock)
