Natural diamonds polished in the European Union will no longer be subject to tariffs upon import into the US.
The exemption, which brings the tax rate to 0% from the previous 15%, is part of a US executive order President Donald Trump issued on September 5, which includes a list of products for which domestic manufacturing is not enough to meet demand. The waiver is applicable to countries that are “aligned partners” with the US, meaning they have concluded an agreement on reciprocal trade. The Antwerp World Diamond Centre (AWDC) and the European Commission negotiated the deal. The levy waiver will be effective retroactively from September 1.
“This is a tremendous boost for the Antwerp diamond industry in general, and it will give Antwerp’s polishing sector a significant uplift,” the AWDC said Wednesday. “The breakthrough may also have global impact, as it paves the way for other major diamond countries to secure similar favorable tariffs.”
Antwerp exports $2.1 billion in polished diamonds to the US annually. The agreement makes the Belgian city the only major trading hub with tariff-free imports to the US. Although rough diamonds are also included on the list, it has no bearing, given there are no mines in the EU.
Meanwhile, the American Gem Trade Association (AGTA) is working on getting the same exception for gemstones. Its president, Bruce Bridges, and CEO, John Ford Sr., traveled to Washington, DC, to speak to policymakers about tariffs on gemstones. The product was also included on the list of goods that could potentially receive a waiver if producing nations successfully negotiated one.
Following meetings with senior executives, the AGTA offered to contact source countries for gemstones and encourage them to engage in talks with the US, in the hope they could reach an agreement similar to that of the EU, thereby reducing or eliminating tariffs on gemstones, the association said.
Image: Polished diamonds. (Shutterstock)