European Cut Diamonds Exempted from US Import Tariffs Again
European cut natural diamonds have once again been granted a 0% US import tariff, restoring duty-free access to the American market after a six-month period during which a 10% surcharge was in effect. The exemption, secured by the Antwerp World Diamond Centre (AWDC) through intensive lobbying, provides significant relief for Antwerp’s diamond sector — a global hub that exported $2.1 billion worth of cut diamonds to the United States in 2024.
Background: A Rollercoaster for Diamond Tariffs
The AWDC had originally negotiated a zero-tariff arrangement in September 2025 as part of the EU-US trade agreement. At the time, US authorities accepted that natural diamonds should be exempt because the United States has no domestic diamond mining or cutting industry, meaning imports do not compete with local producers.
That exemption was upended in February 2026, when US President Donald Trump imposed a new 10% blanket import surcharge under Section 122 of the Trade Act of 1974. The move came after the US Supreme Court ruled that his earlier tariff measures, enacted under the International Emergency Economic Powers Act (IEEPA), were unlawful.
The New Legal Framework: Section 301
The 10% surcharge was set to expire on July 24, 2026. Rather than allowing tariffs to lapse entirely, the US administration found a new legal mechanism under Section 301 of the Trade Act of 1974. This provision allows the President to impose tariffs on countries deemed to insufficiently combat products resulting from forced labor. Unlike Section 122, Section 301 has no time limit and no maximum tariff rate, making it a potentially permanent measure.
The Section 301 action targets the European Union because new European forced-labor product regulations will only take full effect from December 2027, meaning the US considers current EU guarantees insufficient.
Why Diamonds Were Spared
The AWDC successfully argued that the forced-labor rationale does not apply to diamonds. “The diamond industry has extensive traceability and origin-verification mechanisms in place,” said Karen Rentmeesters, CEO of AWDC, citing the Kimberley Process Certification Scheme and G7 controls on rough and polished diamonds.
US authorities accepted this argument, placing European natural diamonds on the list of products exempt from the Section 301 tariffs. “The reasoning behind the exemption agreed in September 2025 is, however, still entirely valid today,” Rentmeesters added. “No diamonds are still being mined or cut in the United States. There is therefore no domestic industry that needs to be protected from European imports.”
Relief in Antwerp
The news was met with widespread relief among Antwerp’s diamond traders. “The relief is great among our Antwerp diamond traders,” said Ine Tassignon, spokesperson for AWDC. “The 0% import tariffs are an important boost for diamond companies. They again have the space to do business and trade with the crucial American market.”
Antwerp is one of the world’s most important diamond trading and cutting centers. In 2024, the city exported $2.1 billion worth of cut diamonds to the United States, making the US a critical market for the sector.
Competitive Implications
The exemption gives European-cut diamonds a clear price advantage over Indian-cut diamonds in the US market. India, the world’s largest diamond cutting and polishing center handling approximately 95% of all polished diamonds globally, continues to face a 10% US import tariff under the new regime.
Rentmeesters noted that the restored exemption makes it “more attractive to have natural diamonds cut in Europe,” adding that “Antwerp has a unique combination of specialised know-how, high-tech cutting capacity, and access to an international network of diamond companies.”
However, scaling up Antwerp’s cutting capacity — currently around 350 active cutters — to compete with India’s massive industry remains a long-term challenge. Many Antwerp diamond traders also deal in Indian-polished stones, which remain subject to tariffs.
Broader Trade Context
The diamond exemption highlights the selective nature of tariff policies. In April 2025, the European Council decided not to impose import tariffs on polished diamonds from the US as part of its countermeasures, after Belgian lobbying. This was critical because GIA, the main diamond certification company, is headquartered in California, and reciprocal tariffs would have created a double tariff burden.
What’s Next
While the restored 0% tariff provides immediate relief, structural uncertainty remains. Section 301 is a permanent measure, and the exemption list can be modified at any time. The diamond sector will need to continue demonstrating its robust traceability systems to maintain this preferential treatment.
The EU’s forced-labor regulations, set to take full effect in December 2027, could also affect the Section 301 justification. Until then, Antwerp’s diamond sector can breathe easier — but the trade policy landscape remains unpredictable.
Sources: VRT NWS, The Brussels Times, Jewellery Info Media, WAM