In April 2025, the U.S. government implemented a 10% import duty on polished diamonds, a move that has sent shockwaves through the global diamond industry. This tariff, part of President Donald Trump’s broader trade policy, has particularly impacted countries like India, the European Union, and China, with respective tariffs of 27%, 20%, and 34% imposed based on trade deficits.

India, which handles over 90% of the world’s diamond cutting and polishing, is now grappling with mounting pressure as the new U.S. tariffs threaten its export viability and job security. The Gem & Jewellery Export Promotion Council (GJEPC) has voiced serious apprehension about the toll on India’s diamond exports and the livelihoods of thousands of workers. Echoing this concern, the Antwerp World Diamond Centre (AWDC)—a pivotal European trading hub—has reported a sharp decline in exports, comparing the severity of the current disruption to the trade paralysis seen during the COVID-19 pandemic.

The U.S., accounting for over half of global polished diamond demand, relies heavily on imports, with no significant domestic production. Industry leaders, including De Beers CEO Al Cook, argue that the tariffs function as a consumption tax, increasing costs for American consumers without benefiting domestic employment.

The luxury market slowdown, particularly in China, exacerbates the situation. Analysts warn that higher prices may deter consumers, leading to decreased demand and potential job losses in the U.S. jewelry sector . According to the World Diamond Council, these tariffs could jeopardize more than 200,000 American jobs tied to diamond imports and downstream sectors, including jewelry, aerospace, and high-precision manufacturing.

In response to the growing crisis, strategic efforts are underway. De Beers, one of the world’s leading diamond firms, is working alongside the Indian government to lobby for zero-tariff access for Indian-cut and polished diamonds into the U.S. Meanwhile, the GJEPC is actively engaging with international policymakers, seeking exemptions and pressing for new trade negotiations to safeguard the industry’s future.

As the industry navigates these challenges, stakeholders emphasize the need for balanced trade policies that protect jobs and maintain the global diamond supply chain’s integrity.