Diamonds Polished in Europe Will Be Zero Taxed in United States

Gems News: Major Breakthrough for Antwerp Diamond Trade

A landmark deal has been finalized between the Antwerp World Diamond Centre (AWDC), the European Commission, and the United States, allowing natural diamonds polished in the European Union to enter the US completely free of tariffs. Previously taxed at 15 percent, the levy has now been reduced to 0 percent, offering a substantial boost to Europe’s diamond polishing sector. The exemption was included in a US executive order signed on September 5, aimed at addressing domestic supply shortages. This Gems News report notes that the change applies retroactively from September 1 and recognizes the EU as an “aligned partner” under reciprocal trade terms.

Antwerp secures a landmark US tariff exemption boosting its diamond trade power.
Image Credit: StockShots

Antwerp Gains Exclusive Advantage

For Antwerp, the world’s most established diamond hub, this development is expected to generate significant uplift. The AWDC described the change as a tremendous boost for both local polishing operations and broader European diamond trade. With approximately $2.1 billion worth of polished diamonds exported from Antwerp to the US every year, the tariff exemption strengthens the city’s role as the only major hub with such a privilege. Rough diamonds are also technically included in the agreement, although this has little impact since the EU has no active mining operations.

Potential Ripple Effects Across the Industry

Industry experts believe the waiver could trigger ripple effects worldwide, encouraging other diamond-producing and polishing nations to negotiate similar favorable terms with the US. If replicated, this move could transform global trade flows, lowering costs for jewelers and consumers while enhancing competition among leading diamond centers.

US Gemstone Tariffs Under Discussion

Meanwhile, the American Gem Trade Association (AGTA) is actively lobbying for similar relief on colored gemstones. AGTA President Bruce Bridges and CEO John Ford Sr. have already held meetings with US policymakers to push for tariff reductions. They are also reaching out to gemstone-producing nations, urging them to pursue negotiations that could mirror the EU’s success, paving the way for more accessible gemstone imports into the United States.

A Game Changer for Global Diamond Trade

This agreement not only cements Antwerp’s status as a central player in diamond commerce but also signals a new era of cooperation between Europe and the United States in luxury goods trade. It may inspire further tariff reforms that could reshape jewelry markets worldwide. The reduction of costs at such a scale means more competitive pricing, stronger trade ties, and a long-term advantage for Antwerp’s historic diamond industry. The potential impact on colored gemstones will also be closely watched, as it could mark the next step in reshaping international gemstone and jewelry commerce.

For the latest on the American tariffs for Diamonds, Gemstones and Jewelry, keep on logging to Gems News.