The United States, traditionally a zero-tariff market for diamonds and gems, imposed duties earlier this year under President Trump’s revised trade order. The new regime includes a 25% levy on Indian imports, set to double to 50% on August 27 unless India reduces its Russian oil purchases. Other key suppliers have also been hit, with rates ranging from 15% for Botswana, Angola, and Belgium to 30% for South Africa and China, and as high as 39% for Switzerland.

For India, the world’s largest supplier of polished diamonds and finished jewellery, the tariffs represent a severe blow. The Gem & Jewellery Export Promotion Council (GJEPC) warned that the move could jeopardise tens of thousands of jobs across SEEPZ, Surat, and the Bharat Diamond Bourse. “The United States is our single largest market, accounting for over $10 billion in exports — nearly 30% of our industry’s global trade,” said GJEPC chairman Kirit Bhansali. “A blanket tariff of this magnitude is devastating for the sector.”

While US jewellers may look to diversify sourcing, India’s dominance in cutting and polishing mid- and small-sized diamonds makes it almost impossible to bypass. Analysts caution that the additional costs will likely filter down the supply chain, raising prices for both retailers and consumers ahead of the crucial holiday season.

Industry associations, including Jewellers of America, the US Jewelry Council, AGTA, and the World Diamond Council, are intensifying lobbying efforts in Washington to restore zero tariffs on diamonds and gemstones. Major corporations such as Signet Jewelers and De Beers are also reportedly engaging with policymakers.

Hopes were boosted when smartphones were exempted from the tariffs earlier this month, reportedly following pressure from Apple. The trade is now urging the US to extend similar relief to diamonds and gems, arguing that these are natural resources unavailable domestically and vital to sustaining the country’s jewellery sector.

With a limited window before the next tariff escalation, stakeholders across the global supply chain are being urged to present a united front. The outcome, industry leaders warn, could define the trajectory of the diamond trade for years to come.