Companies in the diamond and jewelry trade are overwhelmingly worried about how impending US tariffs will affect business, but they have yet to take any steps to alter operations so they can avoid pressure.
Some 52% of respondents said they were “very concerned” about tariffs, while another 24% observed they were “somewhat concerned,” according to data from a recent survey Rapaport News conducted. Of those who responded, 5% said the majority of their supply came from China, which the US hit with a 145% tax last month. About 24% said they purchased a significant portion of product from the country, while 14% received a small amount, and 43% did not source any goods from the mainland.
Those who took the survey believed tariffs would primarily impact the portion of their business that dealt with jewelry manufacturing or components, as well as pricing and margins, with 33% choosing each of these answers. Meanwhile, the remaining three categories — sourcing and importing of diamonds and gems, retail demand and consumer behavior, and shipping and logistics — each garnered 11%.
Over half of respondents expected tariffs to have a major impact on the global balance of the diamond and gem trade, while 35% believed it’s all about how the taxes are implemented. Only 5% thought the industry was resilient enough to bounce back fully in spite of levies.
However, despite the concern, only 10% of those surveyed said they had made changes in their businesses to accommodate any potential fallout from tariffs, such as changing suppliers, preordering extra goods, or looking for alternative solutions. Another 40% noted that they had not yet made changes but were planning to, while 50% didn’t expect to make any adjustments.
The World Diamond Council (WDC) is currently working on an appeal to the US government on a tariff exemption for the diamond industry. Last month US President Donald Trump imposed 10% baseline tariffs for all countries. The government paused further taxes, which were expected to go into effect a few days later, for 90 days while the US negotiates with various countries.
Nearly 30% of industry members who took part in the survey hailed from North America, 14% from Europe, 33% from Asia, 14% from Africa and 5% each from Latin America and Australia and New Zealand. Manufacturers comprised 45% of respondents, while 30% were retailers, 20% were dealers and 5% were designers.
Image: Shipping containers. (Shutterstock)
