The Antwerp diamond sector is relieved after learning the Trump administration has decided not to impose import tariffs on diamonds exported from the European Union after all – making the Belgian city the only global diamond trading hub with tariff-free access to the US market.
Uncertainty has been high in the Antwerp diamond sector in recent months, as US President Donald Trump threatened to impose hefty import tariffs on their products as well. But the EU was granted an exemption from the 15% import duty on diamonds worldwide.
"This is a major breakthrough. Our American partners have come to realise that they cannot deliver or cut diamonds themselves, hence the exception," Karen Rentmeesters, CEO of the Antwerp World Diamond Centre (AWDC), said.
The exemption is part of a US executive order, retroactively effective as of Monday 1 September, which grants tariff waivers to trade partners that conclude agreements covering industrial exports, including nickel, gold, other metals, pharmaceuticals, and chemicals. These goods are now included on the list of exemptions summarised in so-called 'Annex II'.
Big boost
In practice, this means that diamonds of European origin – such as those polished in Antwerp – will no longer be subject to the initially announced standard 15% tariff, but can instead be imported at 0% duty. Rough diamonds are also included in the list, but since there are no EU-origin rough diamonds, this has no impact on the US-EU trade deal.
"This is a tremendous boost for the Antwerp diamond industry in general, and it will give Antwerp’s polishing sector a significant uplift," Rentmeesters said. "Every year, just over $2.1 billion worth of diamonds are exported from Belgium to the US."
As the US does not have diamond mines or significant polishing facilities, there is no domestic industry that needs protection. However, as the world's largest consumer market for polished diamonds, the country is almost entirely dependent on imports from countries like Belgium to meet its high domestic demand.
Rentmeesters also praised the efforts of all industry partners, as well as those of the Belgian Government and the European Commission.
Credit: Belga/James Arther Gekiere
The import duty exemption gives Antwerp's diamond sector a significant competitive advantage: it is now the only major diamond exchange with tariff-free access to the US market.
"This gives us the opportunity to revitalise our diamond cutting activities. We still have around 350 diamond cutters, and that segment of our industry can now get a boost again," Rentmeesters said.
The breakthrough may also have a global impact, as it paves the way for other major diamond countries to secure similar favourable tariffs, she said. "A global 0% tariff on diamonds is particularly important for Belgian diamantaires, who often trade diamonds polished in India."
"We, as Europe, are also setting an example for other diamond-producing countries. Our exemption breaks through a barrier, allowing these countries to also strive for the same exemption," Rentmeesters said.
This, in turn, would benefit Antwerp again: as a global trade centre, it also sources its diamonds from countries such as India, Botswana, and Angola. "It is therefore important that we strive for some kind of universal application of this exemption."
India, a major competitor for Antwerp's diamond trade, still has to deal with a 50% import tariff.
