The US has placed tariffs of 10% on imports from all countries and higher duties on India, prompting concern and uncertainty in the diamond and jewelry industry.
US President Donald Trump announced the move on Wednesday, saying the reciprocal tariffs would protect American workers and strengthen the nation’s economy.
The 10% levy will be the baseline for all countries and will go into effect on April 5, the White House explained in a fact sheet. There will be higher reciprocal tariffs on specific countries with which the US has the largest trade deficits, the document continued. These will take effect on April 9.
India, the world’s largest source of polished diamonds, will face a 27% tariff on US-bound shipments of all products, according to a list on the White House website. The European Union — home to Antwerp and many luxury jewelry brands — will face a 20% duty, while the tariff on Chinese imports will be 34%.
The 27% rate is higher than many in the Indian industry had expected. (Several media outlets have reported it as a 26% tariff.)
“It’s a panicky situation for the trade, for the exporters,” Kirit Bhansali, chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC), told Rapaport News on Thursday. The “million-dollar question,” he said, was how the US consumer would digest the higher tariffs.
There is also much confusion about how the tariffs will work, Bhansali said. The GJEPC is discussing the matter with the office of Indian Prime Minister Narendra Modi and will call a meeting of stakeholders.
Tariffs by product
In a statement on Thursday, the council said US tariffs on cut and polished diamonds would rise to 10% on April 5 and 27% on April 9. They do not currently occur any customs duty. For gold and platinum jewelry, which currently attracts 5% to 7%, the rate will increase to between 15% and 17% on April 5 and to between 32% and 34% on April 9, as the 27% figure is in addition to existing tariffs.
According to the same calculations, silver jewelry will incur tariffs of 32% to 40.5% from April 9, articles of silver will attract 29.7% to 30.5%, and articles of gold 30% to 34.9%. The rate for precious and semiprecious gemstones with the Harmonized System (HS) codes 710391 and 71039910 will be 27%; those will the HS code 71039950 will be charged 37.5%.
Meanwhile, US tariffs on polished lab-grown diamonds and worked synthetic gemstones will increase to between 27% and 34.4%. Pearls will be charged at 27%, with imitation jewelry attracting between 27% and 38%. Exemptions apply to 12 precious-metal categories, including gold bullion.
The GJEPC has communicated with customs officials at ports to enable smooth clearances of shipments, the statement added.
India and the US are in talks over a trade deal that could reverse Trump’s decision, according to Reuters.
“The council is…engaged regularly with the government of India, urging for urgent progress on a bilateral trade agreement with the US, as agreed by both the countries,” said GJEPC executive director Sabyasachi Ray in the statement. “This agreement will be critical in addressing the mitigation of US concerns and thus secure the long-term interests of the gems and jewelry sector.”
The Antwerp World Diamond Centre (AWDC), meanwhile, has set up a dedicated section on its website to address common concerns about the tariffs.
Industry reaction
De Beers is “in the process of assessing the potential impacts of tariffs and will engage with our partners and stakeholders to consider the most appropriate way forward,” a spokesperson for the company said.
Jewelry retailer Pandora estimated the impact on its business would be around DKK 1.2 billion (approximately $155 million) per year before mitigating actions, with an impact of about DKK 700 million (around $90 million) in 2025. The company is exploring ways to minimize the effects, including price increases and the structure of its supply chain.
The Gemological Institute of America (GIA) said it was “working to understand the impact of newly announced tariffs, what operational changes may be needed, and how we can continue to provide services. We will communicate with our clients as soon as possible with further details.”
Update, April 3, 2025: Additional information from the GJEPC, the GIA and Pandora has been added to this story.
Image: A man inspecting a polished diamond with a loupe. (Shutterstock)
