EU To Impose Tariffs On Imports Of US Diamonds, Others

In a bold countermeasure against the United States, the European Union is considering imposing tariffs on imports of diamonds, gemstones, and precious metals. This decision is a direct response to President Donald Trump’s recent move to levy new duties on aluminum and steel imports into the U.S. If implemented, these tariffs could have far-reaching consequences for the global jewelry trade, potentially disrupting well-established supply chains and driving up costs for both businesses and consumers.

Among the items on the EU’s proposed list of affected goods are loose diamonds (excluding industrial ones), along with worked rubies, sapphires, and emeralds. Precious metals such as silver, platinum, and palladium are also included, as well as imitation jewelry crafted from base metals. Altogether, these retaliatory tariffs could amount to a staggering $28 billion, sending shockwaves through the luxury sector and reshaping market dynamics.

The Impact on the Diamond and Jewelry Trade

Industry insiders warn that these tariffs on diamond imports could deliver a significant blow to U.S. diamond dealers, many of whom rely on exporting loose polished stones to Europe for setting and resale. Sara Yood, president and CEO of the Jewelers Vigilance Committee, underscored the potential fallout, stating, “There are many U.S.-based diamond dealers who bring loose polished goods to the U.S. for evaluation and grading before sending them back to the EU—for example, to the French maisons for setting into jewelry.”

The numbers further highlight the scale of this trade relationship. According to the U.S. International Trade Commission, the U.S. exported $1.7 billion in unmounted diamonds to Belgium last year, along with $338 million worth of diamonds to France and $61 million to Italy. Other unset gemstones added another $402 million in exports to France and $102 million to Italy in 2024. These figures illustrate just how deeply intertwined the U.S. and European luxury markets are—and why the proposed tariffs could send shockwaves through the industry.

A Growing Trade War in the Jewelry Sector

Meanwhile, Canada, the leading supplier of aluminum to the U.S., has also announced its own retaliatory measures, imposing 25% tariffs on $29.8 billion worth of American imports. Jewelry-related goods have not been spared—Canada’s initial round of countermeasures had already targeted various jewelry items, and the latest list further expands the scope to include pearl jewelry, imitation pieces, and unwrought gold and platinum, including scrap metals.

As tariffs on diamonds and other luxury goods escalate, businesses are grappling with growing uncertainty. European Commission President Ursula von der Leyen underscored the severity of the situation, warning, “Tariffs are taxes. They are bad for business, and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. Nobody needs that—on both sides, neither in the European Union nor in the United States.”

Watch: The Ripple Effects of the US-EU Tarriffs Trade War

The Future of the U.S. and E.U. Diamond Trade  

As tensions escalate, jewelry industry leaders and international trade experts are closely monitoring negotiations. If these tariffs on diamond imports take effect, they could reshape the way American and European luxury brands operate, compelling companies to rethink their sourcing strategies and adjust pricing structures to offset rising costs.

For now, all eyes are on the EU’s next move. Will diplomacy prevail, or is the luxury jewelry trade on the brink of a full-scale trade war? The coming months will reveal whether these glittering treasures will continue to flow freely across borders—or if tariffs will cast a shadow over their brilliance.

Featured image: Harry Winston

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Sewelo is a world where jewelry, watches, and objects come alive in a shimmering dance of fantasy. Through a literary lens, we celebrate the beauty and elegance that make these treasures more than just possessions.