Another “little disturbance” in the US economy as the European Union is planning to respond to President Trump’s policy to introduce extra taxes on aluminum and steel brought into the country. New tariffs on diamonds, gemstones, and precious metals imported from the U.S. will be a countermeasure. This move could impact trade between the two regions and affect businesses that rely on these exports. Moreover, tension over tariffs creates uncertainty in global markets.
The EU has put together a list of certain goods from the U.S. that could face extra taxes, including diamonds, rubies, sapphires, and emeralds (as long as they’re cut but not set into jewelry), as well as silver, platinum, palladium, and even imitation jewelry made from cheaper metals. All of this could add up to nearly $30 billion in tariffs.
This could be a big problem for the U.S. jewelry business. A lot of diamond dealers bring in polished diamonds just to get them checked and graded, then send them back to Europe, mostly to luxury brands in France that make high-end jewelry. If these new taxes happen, it’ll make that whole process way more expensive and complex for them.
Last year, the U.S. sent $1.7 billion worth of loose diamonds to Belgium, nearly $340 million to France, and more than $60 million to Italy. On top of that, it also shipped $504 million worth of other loose gemstones to France and Italy together in 2024. These numbers presented by the U.S. International Trade Commission shows how much the country exports in gems to Europe.
EU President, Ursula von der Leyen, made it clear that the EU isn’t happy about adding these tariffs but feels like it has no other option. She pointed out that these tariffs hurt businesses and make things more expensive for consumers. They also are bad for supply chains, create uncertainty, and could even cost people their jobs. In any case, neither Europe nor the USA won’t benefit from higher prices and economic instability.
Canada, which supplies the most aluminum to the U.S., is also hitting back with 25% tariffs on almost $30 billion worth of American goods. The first round of Canadian tariffs, put in place after Trump’s trade decisions, already included some jewelry items. Now, with the new taxes on steel and aluminum, Canada is adding more to the list. This time, extra charges will apply to pearl jewelry, imitation jewelry, and raw gold and platinum, including scrap metals coming from the U.S.
