The US’s significant tariff initiatives have heightened uncertainty across global trade flows and capital markets. Although implementation has been paused for 90 days, a baseline 10% tariff is now in effect, pending further negotiations. The diamond trading sector is particularly sensitive to these developments, as the US remains the world’s largest single end-market for polished diamonds, representing between 40% and 55% of global demand by value, according to industry sources.
Initial proposals had included tariffs of up to 26%1 on goods substantially processed in India—a major diamond polishing hub responsible for over 90% of the world’s diamond processing by volume. The final policy trajectory remains uncertain, but a sustained increase in import costs would likely translate into higher US retail prices for diamond jewellery, which could dampen consumer demand. For the midstream market—comprising cutters, polishers, and traders—this creates…