The European Commission and the AWDC (the Antwerp World Diamond Center) have signed a historic deal that removes import taxes on EU-polished diamonds of natural origin.
Thanks to this exemption, the tariff rate has been lowered from 15% to 0%, which was made possible by President Donald Trump, who had passed an executive order at the start of September. It grants waivers to “strategic partners” who had signed reciprocal trade contracts with the U.S. for a whole range of goods that have high demand but relatively low domestic supply. The order came into effect on September 1, even though it was signed a bit later.
This regulation will bear major positive implications for Antwerp, the most important diamond center not just in Belgium but in the whole of Europe. This part of the world exports polished diamonds to the U.S. at the rate of $2.1 billion a year. This order will make Antwerp the only trading hub allowed to import polished gemstones tariff-free into the territory of the U.S. However, since Europe has virtually no diamond mining of its own, the clause is a bit meaningless when it comes to tapping into Europe’s sourcing potential.
According to AWDC, this enactment will provide a boost to Antwerp’s polishing sector and will positively influence the whole Antwerp diamond industry, including the production of custom bracelets, necklaces, earrings, and other pieces. It also states that the order may have a “global ripple effect”, where other countries that produce or sell diamonds would start introducing similar tariff cuts.
A comparable agreement, this time not for diamonds, but for colored gemstones, will soon be negotiated by the AGTA (the American Gem Trade Association). Just a few days ago, AGTA’s President Bruce Bridges and CEO John Ford visited the capital of the U.S. in order to draw legislators’ attention to how much burden the current tariffs impose on gemstone imports. Currently, colored gems fall under the same order as goods qualifying for waivers, however, any exemption will be contingent on discussions between gemstone-producing countries and the U.S.
According to AGTA, after having talks with high officials, the Association has proposed to encourage diamond-producing countries to begin negotiations with the U.S. The Olertis team hopes that such nations will be able to follow the European Union’s lead and get rid of gemstone tariffs in the nearest future (or at the very least to reduce them). This will reduce the burdens associated with diamond and gemstone imports into the U.S. and ease the tension in the whole jewelry industry.
