U.S. Exempts European Natural Diamonds from Import Tariffs

Natural diamonds cut in Europe will be exempt from the latest round of U.S. import tariffs, ending the 10% duty that had applied to the sector over the past six months.

The exemption is expected to benefit Antwerp, Europe's leading diamond-cutting center, according to the Antwerp World Diamond Centre (AWDC). Belgium exported $2.1 billion worth of polished diamonds to the U.S. in 2024, underscoring the importance of the American market to the country's diamond industry.

Europe first secured the exemption in September 2025 following consultations and lobbying efforts by the AWDC and the European Commission. U.S. authorities accepted that natural diamonds should be excluded because the country has no domestic diamond mining or cutting industry that requires protection from European imports.

"The reasoning behind the exemption agreed in September 2025 is still entirely valid today," said AWDC CEO Karen Rentmeesters. "No diamonds are being mined or cut in the U.S. There is therefore no domestic industry that needs to be protected from European imports. In recent months, we have continued to reinforce that message."

The exemption expired in February 2026 after the U.S. Supreme Court ruled that President Donald Trump's reciprocal tariffs, imposed under the International Emergency Economic Powers Act (IEEPA), were unlawful. The administration subsequently introduced a 10% general import surcharge under Section 122 of the Trade Act, which also applied to European polished diamonds.

When the Section 122 surcharge expired on July 24, the U.S. government adopted Section 301 of the Trade Act as the legal basis for imposing new tariffs on selected imports. The provision authorizes duties on countries deemed to have inadequate measures to prevent imports linked to forced labor. Unlike the temporary Section 122 authority, Section 301 has no fixed expiration date or maximum tariff rate, making it a potentially long-term trade tool.

According to the Office of the U.S. Trade Representative (USTR), the European Union currently lacks sufficient safeguards because its new forced-labor regulations will not be fully implemented until December 2027.

The AWDC argued that natural diamonds should remain exempt from the new measure, noting that the industry is already subject to strict regulation and oversight. Existing traceability and due diligence systems, it said, already verify the origin of diamonds and ensure compliance with applicable sourcing requirements.