European-cut natural diamonds regain US tariff exemption

Natural diamonds cut in Europe are once again exempt from US import tariffs after a temporary 10% levy on imports expired, restoring duty-free access to one of the Belgian diamond industry’s largest export markets.

The exemption follows the expiry of the general 10% import surcharge introduced under Section 122 of the US Trade Act of 1974, which had applied to European polished diamonds since February 2026. Under a new Section 301 framework, natural diamonds cut in Europe have been placed on a list of exempt products, allowing them to continue entering the US without additional tariffs.

The Antwerp World Diamond Centre (AWDC) said the decision restores an exemption first secured in September 2025 following discussions with the European Commission and US authorities. According to the organisation, the exemption reflects the fact that natural diamonds are neither mined nor cut in the United States, meaning tariffs on European imports would have little protective effect for domestic industry while increasing costs for US buyers.

Belgium exported $2.1bn (£1.58bn) worth of polished diamonds to the United States in 2024, making the country one of the Belgian diamond sector’s largest trading partners. The previous exemption lapsed in February after the US Supreme Court ruled that president Donald Trump’s reciprocal tariffs, introduced under the International Emergency Economic Powers Act (IEEPA), were unlawful.

The administration subsequently imposed a temporary 10% import surcharge under Section 122 of the Trade Act of 1974, which also applied to polished diamonds imported from Europe. The Section 122 measure expired on 24 July and the US government has since introduced tariffs under Section 301, which targets countries deemed to have insufficient measures to prevent products linked to forced labour from entering supply chains.

The AWDC said natural diamonds should not fall within the scope of those measures because the sector already operates under established traceability and due diligence frameworks, including the Kimberley Process Certification Scheme and G7 controls covering rough and polished diamonds. It added that the exemption is expected to strengthen Antwerp’s competitiveness as Europe’s leading diamond-cutting hub, particularly for high-value natural diamonds destined for the US market.

Karen Rentmeesters, chief executive of AWDC, said: “The restored 0% exemption once again makes it more attractive to have natural diamonds cut in Europe.

“Antwerp has a unique combination of specialised know-how, high-tech cutting capacity and access to an international network of diamond companies. The fact that natural diamonds cut in Europe are once again exempt from these US import tariffs strengthens Antwerp’s position as Europe’s cutting centre.”

Commenting on the news, Purvi Shah, executive director of Responsible Jewellery Council, told Jewellery Focus: “The restoration of the zero-tariff exemption for natural diamonds cut in Europe is a positive development for the sector and reinforces the importance of a strong, responsible and resilient global diamond supply chain.