Major Trade Breakthrough for Belgian Diamonds
The Antwerp diamond sector is celebrating a significant development following the United States' decision to eliminate the 15% import tariff on polished diamonds originating from the European Union. This exemption, which took effect retroactively from September 1, 2025, ensures that Belgium, a key player in the global diamond trade, now enjoys tariff-free access to the vital US market.
The announcement, made by the Antwerp World Diamond Centre (AWDC), marks a 'tremendous boost' for the industry, which had faced uncertainty regarding potential tariffs. The US is the world's largest consumer market for polished diamonds, with Antwerp annually exporting approximately $2.1 billion worth of polished diamonds to the country.
Details of the Exemption
The tariff waiver is part of a broader US executive order linked to a trade agreement between the European Commission and Washington. This agreement grants tariff exemptions to trading partners that have concluded deals on various industrial exports. Previously, polished diamonds from the EU were subject to a 15% import duty.
The rationale behind the exemption is rooted in the fact that the United States possesses neither domestic diamond mines nor a significant polishing industry to protect. As such, the 15% tariff was deemed to offer no strategic advantage to the US but could disrupt established trade flows and burden consumers.
Impact on Antwerp and Global Trade
This development is expected to significantly enhance Antwerp's competitiveness as both a trading and polishing hub. Karen Rentmeesters, CEO of the AWDC, stated that the agreement 'strengthens our competitiveness as both a trading and polishing hub.' The exemption specifically applies to natural diamonds cut and polished within the EU, while lab-grown stones, rough diamonds, and finished jewelry remain excluded.
The decision also sets a crucial precedent for other diamond-producing and polishing countries to seek similar arrangements. Currently, major competitor India faces a 50% duty on polished diamond imports to the US, making Antwerp the sole major trading hub with tariff-free access to the American market for these goods.
Collaborative Efforts Lead to Success
The AWDC credited intensive negotiations and collaborative efforts with the Belgian government and the European Commission for securing this favorable outcome. These entities worked together to demonstrate that the proposed import duty would not benefit the US jewelry market but would primarily harm consumers. The success underscores the strategic importance governments attach to Belgium's diamond industry.
5 Comments
Manolo Noriega
Finally, some common sense in trade. Good for both sides!
Ongania
While this tariff exemption is undoubtedly a boost for Antwerp's diamond industry, it does create an uneven playing field for other diamond-producing nations that still face significant import duties.
Fuerza
The agreement showcases successful diplomatic efforts between the EU and US, which is positive. However, it also highlights how complex and often discriminatory global trade policies can be for other regions.
Manolo Noriega
While removing the 15% tariff might lead to slightly lower prices for consumers on polished diamonds, the focus on luxury goods trade agreements sometimes overshadows more pressing global economic challenges.
Ongania
It's logical for the US to remove tariffs on goods it doesn't produce domestically, which should benefit consumers, but this primarily impacts a luxury item, not everyday necessities.