U.S. Imposes Tariffs on Canadian Diamonds and Jewelry Imports

U.S. President Donald Trump has imposed a 50% tariff on nearly $20 billion worth of Canadian imports, expanding the measures to include polished diamonds and jewelry.

The new duties will take effect on August 19, according to the American Gem Trade Association (AGTA). Affected products include nonindustrial and loose polished diamonds, silver, gold necklaces and chains, precious-metal jewelry, and imitation jewelry, the Jewelers Vigilance Committee (JVC) said in a member alert.

The tariffs are being implemented under Section 338 of the Tariff Act of 1930, a rarely used Depression-era provision that allows the president to impose duties without the lengthy investigations typically required under Section 301 cases, AGTA noted.

According to the U.S. Trade Representative (USTR), the administration determined that Canada maintains policies that discriminate against or place an undue burden on U.S. commerce. Trump’s proclamations cite Canada's automotive trade, dairy protections, and alcohol sales practices as discriminatory. The new tariffs will apply even to products that qualify under the United States-Mexico-Canada Agreement (USMCA) and are in addition to any existing duties or fees.

AGTA said the 30-day period between the announcement and implementation provides an opportunity for bilateral negotiations. While several categories—including energy and critical minerals—have been exempted from the new measures, the association expressed hope that gemstones will ultimately be covered under the critical minerals exemption, although they have not been specifically identified.