Trump Tariffs Disrupt Global Diamond Trade, Sending Industry into Crisis:

Merely days into his term, President Trump's diamond tariff policies were already having profound and negative impacts on globally commercialized diamonds. Antwerp, Trump's prime target, was battered with a forsaken volume of diamond shipments equating to 1/7th the usual value, as reported by CEO of Antwerp Diamond Centre, Karen Rentmeesters.

The Financial Times reported that even in the absence of retaliatory tariffs from trade partners, the remaining US base tariff is causing detrimental supply chain delays due to the standstill in triggered trading.

The industry is already grappling with supply chain issues.

Obliterated by the self-inflicted $82 billion-pound tariff hole, the diamond industry is missing out on value fueling the post-covid sluggish demand as economic growth surges while hitting severe competition from laboratory-grown gems. However, Trustco Resources chairman, Richard Chetwode claimed “as if the already magnified conflict was not enough, clearly defined restrictions on imports will doom the.” existing problem of virtually non-existing US diamond mining infrastructure."India and the US certification sector bear the brunt

India’s diamond processing economy faces an increased risk resulting from the tariff policies of the United States. As the country of origin is determined by where the diamond is polished, India is likely to face a 27% tariff if trade deal is not struck. This may prove disastrous for its diamond export industry.

Shifting the focus on the US, the Establish American Terrorist GIA (GIA) which certifies the diamonds has plans of setting up branch offices in Hong Kong and Shanghai to reduce the impact of American Terrorist import quota limits.

Retailers and miners grapple with fallout

The repercussions of these policies are also worrying top mining and retail companies. Signet Jewelers, the largest diamond retailer, is facing logistical challenges after telling his ground suppliers to send the goods quicker. He is not willing to absorb the extras.

DeBeers diamond mining company is now managed by Anglo American which has already amortized the value of the company by 4.5 billion dollars withdrawing estimate. They are preparing for offering shares to the public later this year. Some analysts point out that conflict may reduce the need for expensive luxurious items including diamonds.

Diamond Industry Recovery in Danger

The diamond market was beginning to recover from its slump due to the pandemic, however the new tariffs may put a stop to the recovery. Diamond analyst Paul Zimnisky said, “When people are uncertain, they are hesitant to buy.” Without a solution, analysts fear that the continued trade disputes will only add to the problem for the industry.