Fresh US Import Tariffs Could Affect Colored Gemstones and Pearls

The United States Trade Representative (USTR) is conducting three investigations that could lead to new tariff regulations at the end of the month.

The potential tariffs could affect imports of loose colored gemstones and cultured pearls, the American Gem Trade Association (AGTA) said Monday. All of the investigations are under Section 301 of the Trade Act.

The USTR has released preliminary findings that included around 60 countries, proposing a 12.5% levy on imports from 46 countries, including India, Thailand, Sri Lanka, Australia and others. A final resolution is likely later this month, following public hearings and the comment period.

The review also covers subsidies, industrial policies and manufacturing overcapacity involving 16 trading partners, including Cambodia, Thailand, the European Union, India and Japan. The USTR is expected to issue its final resolution on this later in the month as well.

A separate investigation involving Brazil has concluded that a 25% tariff will apply to imports on loose polished colored gemstones from that country, effective July 22. Rough colored gemstones will be exempt from the duties. Gemstones exported from Brazil to a third country for polishing will be subject to the duty rate applicable to that third country when imported into the US.

Earlier this year, after the Supreme Court struck down the reciprocal import tariffs President Donald Trump imposed under the International Emergency Economic Powers Act (IEEPA), the administration introduced a temporary 10% global import surcharge under Section 122. Certain products are exempt, and the tax is set to expire on July 24.

US Customs and Border Protection (CBP) is continuing to process refunds of previously collected IEEPA tariffs. The agency recently reported to the Court of International Trade that refund claims had been filed for nearly 60% of the approximately $166 billion paid, though it had refunded only a fraction of that amount.

AGTA president Bruce Bridges is continuing to advocate for the colored-gemstone industry, the organization stressed.

“Last month, we met with a dozen members of congress in Washington, DC, to make the case that imports of loose colored gemstones should qualify for their historic duty-free status due to there being no meaningful domestic production of these resources,” said AGTA.

Image: Natural colored gemstones. (Shutterstock)