Trump's tariffs cause diamond industry come to a standstill

The global diamond industry has ground to a halt due to a large-scale trade confrontation following the introduction of elevated tariffs by the current US administration.

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Diamonds

According to The Financial Times, the crisis was triggered by the imposition of a 10% import duty on diamonds entering the United States, which drastically disrupted global supply chains.

Antwerp — one of the world's largest diamond hubs — has been affected particularly hard. Shipment volumes through the city have fallen to just one-seventh of previous levels, delivering a severe blow to the international trade system for precious stones.

The Antwerp Diamond Center, a key player in the redistribution and certification of diamonds worldwide, is reporting a sharp decline in activity.

Previously, it was reported that the Antwerp center faced serious challenges due to restrictions on the export of Russian diamonds.

The dramatic impact has been driven not only by the tariffs themselves, but also by uncertainty over potential future restrictions based on the country of origin of the diamonds.

India, which handles up to 90% of the world's diamond cutting and polishing, is also facing significant difficulties due to the new US tariffs — further deepening the crisis.

In an attempt to minimize losses, some companies have begun redirecting logistics and relocating operations to alternative diamond hubs such as Dubai and Hong Kong.

However, these efforts have not been enough to offset the decline in demand from the world's largest consumer — the United States. The situation is further complicated by the threat of disruption to the US diamond certification system, which is undermining market confidence.

The turmoil in the diamond industry highlights just how vulnerable global luxury sectors can be to political decisions, particularly when it comes to high-value goods.

Experts warn that the consequences of US trade policy could be long-lasting, pushing market players to seek more resilient supply routes and reduce their dependence on a single consumer region.