Now US tariffs – Will diamonds ever catch a break?

Debswana executives have a phrase they often apply to situations similar to the one the industry is facing from the recent announcement of global tariffs by the United States: VUCA.

Volatile, Uncertain, Complex and Ambiguous or VUCA perfectly describes the storm of confusion that has been unleashed by the US tariffs that were set to kick in on Wednesday. President Donald Trump’s decision on Thursday to pause the tariffs for 90-days, and increase the rates on China beyond 100%, introduce even more instability for the diamond world. For businesses, uncertainty is the archenemy of growth as it introduces risks that cannot be priced into operating costs, revenue projections, or even basic business continuity. A clear example of this is Lesotho where the planned 50% tariff would have killed off that country’s key textile sector, a major employer in the mountain kingdom.