New U.S. Import Tariffs May Impact Colored Gemstones and Pearls

The United States Trade Representative (USTR) is conducting three Section 301 investigations that could result in new import tariffs by the end of the month, raising concerns for the colored gemstone and pearl trade.

According to the American Gem Trade Association (AGTA), the proposed measures could affect imports of loose colored gemstones and cultured pearls. Preliminary findings cover around 60 countries, with a proposed 12.5% tariff on imports from 46 nations, including India, Thailand, Sri Lanka, Australia and several others. The USTR is expected to announce its final decision after reviewing public comments and testimony from recent hearings.

A separate review is examining subsidies, industrial policies and manufacturing overcapacity involving 16 trading partners, including Cambodia, Thailand, the European Union, India and Japan. A final ruling on those measures is also expected later this month.

Meanwhile, a separate Section 301 investigation into Brazil has concluded with a 25% tariff on imports of loose polished colored gemstones from the country, effective July 22. Rough colored gemstones will remain exempt. Under the new rules, gemstones mined in Brazil but polished in a third country will be subject to the tariff rate applicable to the country where they were processed when entering the U.S.

Earlier this year, after the U.S. Supreme Court struck down reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the Trump administration introduced a temporary 10% global import surcharge under Section 122. The surcharge, which exempts certain products, is scheduled to expire on July 24.

U.S. Customs and Border Protection (CBP) is also continuing to process refunds for tariffs previously collected under the IEEPA. The agency recently informed the U.S. Court of International Trade that refund claims had been filed for nearly 60% of the roughly $166 billion collected, although only a small portion has been repaid so far.

AGTA said it continues to advocate for maintaining duty-free treatment for loose colored gemstones. The association noted that President Bruce Bridges met with members of Congress in Washington, D.C., last month to argue that loose colored gemstones should retain their long-standing duty-free status because there is no significant domestic production of these materials in the United States.