Breakthrough nears in US diamond tariffs
Mbongeni Mguni | Friday September 26, 2025 08:52
In a statement on Wednesday night, the Antwerp World Diamond Centre (AWDC) announced that its exports to the US were now free from tariffs. The US is now applying an arrangement where certain products can be imported at zero tariff if a bilateral agreement between that country and the US has been agreed upon.
“The United States applies new country-specific tariffs on diamond imports via Annex II, a list of certain products that can be exempt from tariffs in case a bilateral agreement is concluded. “For Belgian (EU) traders, this means polished diamonds of EU origin can now be imported at a zero percent import tariff when entering the US. “This exemption makes Antwerp the only major trading hub with tariff-free access to the US market,” the AWDC said.
The U.S, which is the world’s largest market for diamonds, accounting for more than 50% of demand each year, slapped tariffs on nearly all countries in the world earlier this year, sending the industry into steep uncertainty.
The move affected producers such as Botswana, as well as cutting and polishing centres like Antwerp, Tel Aviv, Dubai, and India. With the natural diamond industry already battling to recover from a prolonged downturn, the move was a further blow. India, which processes about 90% of the industry’s stones, was hit with the highest tariff of 50%.
De Beers’ executives told Mmegi that loose natural diamonds had been included in Annex III of the U.S tariffs, a list which covers “Potential Tariff Adjustments for Aligned Partners”.
“(This) opens the way for tariff-free imports of diamonds into the US for countries that establish new reciprocal trade deals with the US,” Emma Wade-Smith, Senior Vice President, Government Affairs, said in response to emailed questions. “Whilst this list of countries is expected to change over time as countries engage in trade discussions with the US, the White House has communicated that deals are currently in progress with the UK, Japan, Vietnam, the Philippines, Indonesia, and South Korea.”
Wade-Smith said De Beers continued to advocate for the US administration to scrap tariffs on rough and polished natural loose diamonds.
“We continue to make the case in our government engagements, including with the US Administration. “We see the addition of diamonds to Annex III as a very positive step, as it shows that the US has recognised the arguments we have been making and opened the way for tariff-free imports of diamonds. “It is now important for countries to engage in and progress trade discussions with the US,” she said.
President Duma Boko, who is in New York for the United Nations General Assembly, met with US Secretary of Commerce Howard Lutnick and noted progress in reaching a tariff deal.
“Yesterday’s meeting between President Boko and Secretary Lutnick further advanced the negotiations, underscoring the government’s determination to secure a long-term trade agreement that could reduce tariffs even further.
“Such an agreement would significantly enhance Botswana’s export prospects to the American market, its largest single diamond market, which previously accounted for $500 million in annual diamond exports,” reads a statement from the Presidency.