Tariffs jeopardise 200,000 American diamond jobs — World Diamond Council

Mbongeni Mguni | Wednesday May 7, 2025 06:00

The WDC, the US-based umbrella body representing the natural diamond value chain, estimates that thousands of jobs could be lost across the industry from manufacturing to independent jewellers.

On April 2, a day he called Liberation Day, President Donald Trump announced a minimum 10% tariff on all US imports as well as 'reciprocal tariffs' across the globe to correct what he said were trade imbalances disadvantaging the US. Countries such as Botswana were due to be slapped with 37% tariffs on all exports to the US, whilst other key diamond pipeline players such as India, the European Union, Israel, and China would all be similarly affected.

Days later Trump announced a 90-day pause on the planned tariffs, but maintained the minimum 10% levy.

The US is the world’s biggest market for diamonds, accounting for upwards of 50% of annual sales.

“Natural diamonds aren't produced in the United States, but are vital to the health of the American jewellery industry, an essential contributor to the national economy,” the WDC said in a statement on Monday. “The US jewellery industry generates more than $117 billion in annual economic activity in America and supports over 200,000 American jobs. “A tariff on natural diamonds would put all of this at risk.”

The council said tariffs on diamonds would function as a consumption tax, raising prices on engagement rings, anniversary gifts, and other jewellery purchased by American families. Retailers are already reporting concerns about inventory pressures, and the uncertainty is beginning to translate into higher prices for consumers, the WDC said.

“An exemption for natural diamonds would help ensure stable supply chains, protect US manufacturing competitiveness, and prevent added costs for American consumers,” the council stated.

WDC president, Feriel Zerouki said whilst the organisation supports Trump’s drive for fair and reciprocal trade, the current tariff review has highlighted the need for fair treatment across the board.

“Our members are united in calling on the US government to exempt natural diamonds and on governments around the world to support the exemption reciprocally, ensuring that trade policies support jobs, competitiveness, and consumers. “The diamond industry is aligned, and our members are engaging directly with officials to support a positive resolution.”

The WDC’s comments echo remarks by Vice President Ndaba Gaolathe recently in Washington DC, where he noted that the planned tariffs would harm the US, just as much they would impact producers such as Botswana.

“High tariffs on our diamonds will have deleterious effect on us because we obviously are very diamond dependent,” he was quoted as saying by Bloomberg. “So we won't be able to sell diamonds to the level that we would've wanted to. “The US doesn't have diamonds; it doesn't have diamond mines. But the US has been able to create an entire diamond sector, jewellery sector. “It's large, it creates jobs for Americans. “So the US has benefited from Botswana diamonds and a sudden pushback on Botswana diamonds will and can hurt the US more than it imagines.”

Beyond the major jewellery retail giants, much of the US diamond retail sales takes place in independent, smaller shops, many of them family-owned and dating back generations. The planned tariffs would significantly hurt this segment of retailers, at a time when the natural diamond industry is still attempting to recover from a prolonged slump.